An insured in Traverse City understated her age on the application for an individual disability policy that includes the misstatement of age provision. After a covered disability, the insurer discovers her true age. Under Michigan law, what is the proper outcome?

Why A is correct

M.C.L. 500.3434 permits a misstatement of age provision in individual disability policies, and when it is included the remedy is an equitable one: the benefit is recalculated to what the premiums actually paid would have purchased at the insured's correct age. This differs from the broader false-statement rule of M.C.L. 500.2218, under which a false statement bars recovery only with intent to deceive or an increased risk of loss; an innocent age error is resolved by adjusting the benefit rather than voiding the contract or forfeiting the claim.

Why the other options are wrong

• B) An age misstatement handled by this provision does not void the policy; the statute directs an adjustment of the benefit instead.
• C) The claim is not denied; only the benefit amount is corrected to reflect the accurate age and premium basis.
• D) Paying the full stated benefit would give the insured coverage she never paid for at her true age, which is exactly what the adjustment mechanism prevents.

Memory hook

Wrong age on an A&H claim? Recalculate the benefit, don't kill the policy.