California Insurance License Exam Practice Test Practice Question
How long does the suicide exclusion apply to life insurance policies?
Correct Answer: B
Rationale: The suicide exclusion in life insurance policies typically lasts for a period of 2 years. This means that if the insured commits suicide within this timeframe, the insurer may deny the claim and refund premiums instead.
Option A (1 year) is incorrect, as most policies extend this exclusion beyond just one year to prevent potential misuse.
Option C (3 years) and Option D (4 years) also do not align with standard practices, as longer exclusions are uncommon and could unfairly penalize policyholders. Thus, the 2-year exclusion is a widely accepted standard in the industry.
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