State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under the age misstatement provision in group life insurance (CIC §10369.3), if the insured's age was misstated, the insurer will:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The misstatement-of-age provision (CIC §10369.3) states that if the insured's age was misstated, all amounts payable shall be such as the premium paid would have purchased at the correct age. In other words, the insurer scales the death benefit to what the paid premium actually buys at the true age — the family gets no windfall, and the policy is not voided. This is a correction mechanism, not a penalty: the policy remains valid, the face amount is adjusted, and there is no premium refund for the beneficiary.
Why the other options are wrong
- B) Age misstatement does not void the policy. The provision adjusts the benefit amount so the family receives no windfall from the age error.
- C) The full face amount is not paid. The benefit is recomputed as if the correct age had been used at issue, based on the premium actually paid.
- D) No past premiums are refunded to the beneficiary. The correction operates on the amount payable at death, not by refunding premiums.
Memory hook
Wrong age, right price: the death check is recast to what the premium truly bought.