John Galt, Anyone Interested,
I think you are talking about War Protection. As I understand it, the bonus to turning it off, is to country score, not Welfare Index. War Protection protects a single country, not the whole Empire, from attack by anyone. It has no effect on War Level restrictions.
Also, I looked up the documentation on war levels, to clarify my own question about War's Between Players...
"Countries in war levels 3, 4, and 5 can declare war on any country with a president, which is at the same war level. Starting with war level 6, it is also possible to declare war against countries with a president, that have a war level one or two levels higher than that of the attacking country."
"Declaring war against countries in higher level than your own is as described above possible if you are in war level 6 or higher but it has a price. Once you declare war against a higher level country, you become vulnerable and can be attacked by any country with the same war level as yours or up to two levels higher."
"Players in war level 7 and up can fight any players in war level 7 and up."
Assuming the Documentation is upto date. That means...
Empires with War Levels 0-2 are safe from PvP war.
Empires with War Levels 3-5 can attack, and be attacked, only by players on the same war level.
Empires with War Level 6, can attack players with war levels between 6-8, however attacking a player with War Levels 7-8, leaves them vulnerable to attack by other players on War Levels 7-8.
Empires with War Level 7+ can be attacked by Empires War Level 6+, and can attack Empires War Level 7+, they can only attack an Empire War Level 6, if that Empire first attacks someone on War Level 7-8.
Rules stated, only apply to non-war worlds. Wars on Fearless Blue have fewer restrictions.
Signed President of DanNation on LU