A pilot applies for life insurance. The insurer approves the application with a $10 additional monthly premium modification due to the risk involved. If the pilot declines this modification, what will the insurer likely issue?

In the scenario where a pilot applies for life insurance and the insurer proposes an additional $10 monthly premium due to the increased risk associated with aviation, the pilot's refusal to accept this modification typically leads to the insurer issuing a policy with an aviation exclusion. This type of exclusion specifically states that any claims related to accidents or incidents occurring while engaging in aviation activities may not be covered.

Insurance companies often assess risk based on the applicant's occupation, and flying can be classified as a high-risk activity. When the pilot declines to pay the additional premium to account for this heightened risk, the insurer cannot leave the coverage unchanged without incurring significant potential liabilities. Thus, the most prudent step is to include an aviation exclusion in the policy, allowing the pilot to still obtain some life insurance coverage while mitigating the insurer's risk exposure related to aviation activities.

The other options do not align as closely with the circumstance of declining the premium modification. Full coverage would suggest no exclusions, which is not a feasible option given the risk. A standard policy may imply the pilot is insured without modifications, which contradicts the requirement for additional premium adjustments based on risk. Lastly, a higher premium policy does not apply since the pilot chose to decline the proposed increase, rendering this option moot