Tennessee Life Producer Practice Exam

Which of the following is NOT a typical exclusion found in life insurance policies?

1. Intentional acts

2. Natural disasters

3. War and military service

4. Criminal activities

The correct answer is: Natural disasters

In the context of life insurance policies, exclusions typically refer to specific situations or conditions under which the insurer will not pay benefits. Intentional acts, war and military service, and criminal activities are common exclusions because they involve an element of personal risk or premeditated behavior that insurers often do not cover. Natural disasters, on the other hand, are generally not excluded from life insurance coverage. Life insurance policies typically aim to provide financial support in the event of an unforeseen natural event, such as an earthquake or flood, leading to death. Insurers understand that while natural disasters can lead to severe consequences, they do not involve the same level of personal choice or moral hazard as the other exclusions mentioned. Thus, choosing natural disasters as not being a typical exclusion aligns with the understanding that these events are often considered external and unavoidable risks that insurance seeks to address, making it the correct answer in this context.