How to handle DeadObjectException?

Question

I'm getting exception reports of DeadObjectException from some devices when requesting prices for in app purchases. The exception occurs when I call getSkuDetails on my billing service connection.

I don't find the documentation on this particularly clear.

The object you are calling has died, because its hosting process no longer exists.

1. Am I understanding this correctly if I assume that the billing service has been killed by Android for some reason?
2. Why?
3. Is there a way to stop this from happening?
4. Should I stop this from happening?
5. How should I deal with the exception?
6. Is there a way I can reproduce this scenario for testing?

I have two methods

void bindToBillingService() {
    AndroidLauncher.getActivity().bindService(new Intent("com.android.vending.billing.InAppBillingService.BIND"),
            mServiceConn, Context.BIND_AUTO_CREATE);
}

public void unbindBillingService() {
    if (getBillingServiceConnection() != null) {
        AndroidLauncher.getActivity().unbindService(mServiceConn);
    }
}

Should I be doing something like this?

    try {
        // Do something billing related
    } catch (DeadObjectException e) {
        unbindBillingService();
        bindToBillingService();
        // Wait for a connection and then try again
    }