Tennessee Insurance Practice Exam

Which feature would limit the insurer's liability if N, a student pilot, dies while flying?

1. Rider of Exclusion

2. Permanent Exclusion

3. Flight Exclusion

4. Accelerated Death Benefit

The correct answer is: Flight Exclusion

The correct answer is the Flight Exclusion feature. This specific feature in an insurance policy serves to limit the insurer's liability in situations involving aviation activities, including flying as a student pilot. By incorporating a flight exclusion, the insurer clearly establishes that any claims related to incidents occurring while engaging in flying activities are not covered under the policy. This is particularly pertinent for student pilots, as they typically have more restrictions and limitations due to their inexperience, making them a higher risk from an insurance perspective. In contrast, the other options do not specifically address the scenario of flying. A rider of exclusion might pertain to broader circumstances that aren't limited to aviation activities, while a permanent exclusion generally denotes a lifelong exclusion of coverage for a specific condition or situation but doesn't effectively capture the unique liabilities associated with flying. The accelerated death benefit pertains to situations where a portion of the life insurance payout can be accessed early under certain conditions—this does not address the limitation on liability related to flying activities. Thus, the flight exclusion is the most fitting choice for limiting insurer liability in the context of a student pilot's death while flying.