Colorado Life Producer License Practice Test

What does the status clause in an insurance policy exclude during active military duty?

1. All causes of death while insured is active

2. All benefits from the insurance policy

3. All causes of death not related to accidents

4. Specific illnesses contracted during service

The correct answer is: All causes of death while insured is active

The status clause in an insurance policy is designed to address the unique risks associated with military service. When the insured individual is on active duty, the policy typically excludes coverage for all causes of death that occur during this period. This is because military duty can involve heightened risks and potential dangers that are not typically accounted for in standard insurance policies. Therefore, the correct answer accurately reflects the protective measures that insurers may implement to limit their exposure to increased risks associated with military action or conditions that arise while serving. This is an important aspect for both insurers and policyholders to understand, as it directly impacts the coverage and benefits available to service members actively engaged in military operations. Other options do not align with the concept of the status clause, as they suggest either broader exclusions or specific conditions that wouldn't encapsulate the overarching principle of ineligibility for coverage during active duty.