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Death occurs whenever a character's health drops to zero. The character becomes a corpse and cannot perform any in-game actions (move, fight, trade, etc), except for the /roll emote (oddly enough). They can still use chat features, map travel, and camera control. Being dead also allows a player to switch the camera to other party members' points of view by clicking the corresponding bar on the Party List. This allows a dead member to point out to a living member on his/her radar where to go.

A dead player can be resurrected by a party member.

In areas with resurrection shrines, the whole party will be resurrected on a wipe (after a short delay). If the resurrection shrine has a priest, then he must be alive for the party to be resurrected. All PvE missions, and several PvP arenas, lack resurrection shrines.

Death incurs a Death Penalty except in the following situations.

Avoiding death can earn you the Survivor title.

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