State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under the age misstatement provision applicable to group life insurance (Section 10369.3), if the insured's age was misstated at the time the coverage was issued, the insurer must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The age misstatement provision provides that if the age of the insured has been misstated, all amounts payable under the policy are adjusted to the amount the premium paid would have purchased at the correct age. This keeps the policy fair: the insurer keeps the premium actually paid and pays only the benefit that premium supports at the true age. The provision prevents the insured from profiting from a lower age at application.
Why the other options are wrong
- B) The policy is not cancelled and premiums are not refunded; the insurer adjusts the benefit amount instead.
- C) The full face amount is not paid regardless of the discrepancy; the benefit is scaled to the correct age.
- D) No new application or medical exam is required; the remedy is the benefit adjustment.
Memory hook
Wrong age on the form? The benefit is resized to what the premium really buys at the true age.