Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An insured's age is misstated on a life insurance application, and the insurer discovers the error after the policy has been in force. Under the misstatement-of-age rule, the insurer will:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The misstatement-of-age provision, reflected in California standard provisions such as CIC Section 10369.3, provides that if the insured's age has been misstated, all amounts payable are such as the premium paid would have purchased at the correct age. This adjusts the benefit proportionally rather than voiding the contract. Because age is a key rating factor in life insurance, the correction restores equity without penalizing the beneficiary for an innocent error.
Why the other options are wrong
- B) Age misstatement does not void the policy; it results in an adjusted benefit based on the correct age.
- C) No adjustment would let the beneficiary profit from a younger stated age; the benefit is corrected.
- D) Premiums are not refunded; the coverage continues but at the adjusted amount.
Memory hook
Wrong age = recalculated benefit. The premium buys what it should have bought.