Final answer:
The exclusion does not apply for life insurance proceeds when the policyholder dies, when medical expenses are incurred, when a car is damaged, stolen, or causes damage to others, and if a dwelling is damaged or burglarized.
Step-by-step explanation:
The exclusion does not apply for life insurance proceeds in certain situations:
- If the policyholder dies
- When medical expenses are incurred
- When a car is damaged, stolen, or causes damage to others
- If a dwelling is damaged or burglarized
In these cases, the life insurance policy pays out to cover the costs or damages.