State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
When a group life insured's age is found to have been misstated, under CIC Section 10369.3 the insurer will:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
CIC Section 10369.3 contains the age misstatement provision for group life insurance. If the insured's age was misstated on the application, the insurer does not void the policy; instead it adjusts the benefit or the premium to reflect the true age. If the premium was set at the correct age, the amount of insurance is reduced to what that premium would have purchased at the true age; if the benefit is kept, the premium is adjusted. This keeps the contract equitable for both the insurer and the insured.
Why the other options are wrong
- A) The policy is not automatically voided; the statute requires an equitable adjustment of benefit or premium.
- B) Paying the full face amount without adjustment would ignore the misstatement and reward the error.
- C) No fine is imposed on the employer; the remedy is a contractual adjustment between insurer and insured.
Memory hook
Wrong age on the form = benefit resized to match the real age.