Question 79

A policy may contain provisions excluding or restricting coverage as specified in the event of death under all of the following EXCEPT a fare-paying passenger traveling via commercial transportation.

A fare-paying passenger traveling via commercial transportation is generally covered by policies due to the regulations and safety measures in place for commercial carriers, making this option the exception.

A) a fare-paying passenger traveling via commercial transportation

This option is correct because insurers typically cannot restrict coverage for fare-paying passengers using commercial transportation, as these carriers operate under strict safety regulations and are subject to oversight.

B) a licensed pilot of a personal aircraft

This option is incorrect as many insurance policies may exclude coverage for licensed pilots flying personal aircraft due to the increased risks associated with private flying compared to commercial flights.

C) war, or act of war

This option is incorrect as policies often include exclusions for deaths resulting from war or acts of war, as the risks are considered outside the typical scope of coverage.

D) suicide

This option is also incorrect because many insurance policies impose exclusions on deaths resulting from suicide, particularly within a specified time frame after the policy is issued.

Conclusion

The correct answer is A, as insurance policies are generally required to provide coverage for fare-paying passengers on commercial flights, distinguishing it from the other options that typically have exclusions due to the heightened risks or circumstances involved. The other options, including licensed pilots, war, and suicide, represent scenarios where coverage is often restricted or excluded by insurers.