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Terms in this set (50)

* Exclusions: A feature of a life insurance policy stating that the policy will not cover certain risks.

* Exclusions and restrictions are situations or conditions which are not covered or covered with substantial limits.

* The common ones are injuries due to war or an act of war, self-inflicted injuries, and those incurred while the insured is serving as a pilot or crew member of an aircraft

* Other exclusions are losses resulting from suicide, hernia (as an accidental injury), riots, or the use of drugs or narcotics

* Losses due to injuries sustained while committing a felony, or attempting to do so, also may be excluded

* Foreign travel may not be excluded in every instance, but extended stays overseas or foreign residence may cause a loss of benefits

* Occupational injuries and illnesses are covered by Workers' Compensation and typically excluded

* The exclusions section is NOT included in the policy face (first page of an insurance policy)

* Suicide Clause: The policy will be voided and no death benefit will be paid if the insured commits suicide within 1 year from policy issuance. The primary purpose of a suicide provision is to protect the insurer against the purchase of a policy in contemplation of suicide.

* Aviation: The insurer will not pay the claim if the insured dies due to involvement with aviation, such as a military pilot flying a jet aircraft.

* War or Military Service: The insurer will not pay the claim if the insured dies while in active military service or due to an act of war.

* Hazardous Occupation or Hobby: If the insured dies as a result of a hazardous occupation or hobby, the insurer will not pay the claim.

Waivers for Impairments

* When an insurance company does not cover a loss due to a specific condition the insured has. This is usually called an impairment rider.

* If the insured's condition improves, the company may be willing to remove the waiver.