Final answer:
The exception to the non-deductibility of life insurance premiums is the actuarially fair premium. If life insurance is sold separately to each group, the actuarially fair premium is based on the group's specific risk profile. If insurance is offered to the entire group without family cancer histories, the actuarially fair premium for the group as a whole is higher due to increased uncertainty and potential risk.
Step-by-step explanation:
The exception to the rule concerning the non-deductibility of life insurance premiums is when the premiums are actuarially fair. If an insurance company were selling life insurance separately to each group, the actuarially fair premium for each group would be determined based on the group's specific risk profile and mortality rates. However, if the insurance company were offering life insurance to the entire group and could not find out about family cancer histories, the actuarially fair premium for the group as a whole would be higher due to the increased uncertainty and potential higher risk.