Question

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?
a. misrepresentation
b. exclusion
c. collateral assignment
d. concealment

Answer 1

Answer:

b. exclusion

Explanation:

Exclusion is a provision in life insurance policies that excludes coverage for some type risk. Insurance companies utilize this provision in removing coverage for risk they are unwilling to insure. N flying as a student pilot is a risk and his insurance may not cover it, other examples of risk insurers may not be willing to cover are extreme sports such as biking.