A policyowner misstated the insured's age at application, and the insurer discovers the error after the contestability period has expired. The insurer will typically:

Why A is correct

Under the age misstatement provision, the policy is not voided. Instead, the insurer recalculates the benefit so that the premiums actually paid purchase the coverage that the correct age would have bought, or it adjusts the premium to the correct-age rate going forward. Age is a rating factor, so the correction restores the policy to what it should have been without forcing a rescission. This rule applies even after the contestability period, because it is a correction of a mechanical fact rather than a contest of the contract.

Why the other options are wrong

• B) The remedy is an adjustment of the benefit or premium, not a voiding of the contract and a return of premiums. The correction restores the coverage to what the applicant actually paid for at the true age.
• C) The age misstatement provision resolves the error by adjustment, and the policy is not contested after the contestability period expires. Voiding is reserved for material misrepresentation within the contestability period, not for a simple age error.
• D) The insurer adjusts benefits or premiums going forward, but it does not recompute or refund past premiums retroactively. After the contestability period, the age misstatement provision alone governs the correction of the benefit.

Memory hook

Wrong age on the form? Adjust the benefit to match the premium. No void, no fraud fight, just math.