We used to do this as well, although we were more forgiving with respect to XP (a character standing WAAAY back with a bow or sling or tossing rocks was considered to be "participating" and would therefore get a full share of XP). While this could have been admittedly abused, I can't recall that it ever was, and was really just reserved for characters who were significantly below average level.We used to do this in the 1E & 2E days, it was mandatory. But 9 out of 10 times it spelled certain doom for said 1st level PC if the party was any level over 3. Compound that with the fact that in order to stay alive you had to play pretty cowardly and stay out of combat most of the time which meant less XP so it took forever to advance I think its probably alot more feasible in 5E and maybe even 3E.
Per the thread title: What is your typical procedure after a character in the group has died?
Does the player immediately roll up a new character and join right away or do they sit out until an "appropriate point?" (or something in between)
Do players typically have backup characters?
Do characters joint the group at the same level, a lower level, 1st level?'
What about equipment?
These questions are just guidelines/suggestions - the main question what does your group typically do after a character has died?

(Dungeons & Dragons)
Rulebook featuring "high magic" options, including a host of new spells.