State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An employee's age is misstated on a group life insurance application. Under California Insurance Code Section 10369.3, the insurer will:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10369.3 sets the standard age-misstatement provision: if the insured's age is misstated, all amounts payable under the policy are adjusted to what the premium paid would have purchased at the correct age. The policy is not voided; the benefit is corrected to reflect the true relationship between the premium and the coverage. This protects both the insurer and the insured from an unintended windfall or shortfall based on age.
Why the other options are wrong
- B) Age misstatement does not void the policy; the payable amount is simply adjusted to the correct age.
- C) The misstatement is not ignored — it changes the benefit amount payable under the policy.
- D) The incontestability clause does not apply here; age misstatement is handled by benefit adjustment, not by contesting the policy.
Memory hook
Age misstatement = the math self-corrects: benefits become whatever the paid premium buys at the true age.