The insured's age was unintentionally misstated on the application for a New York life insurance policy. Under the required misstatement of age provision, the insurer will:

Why A is correct

Under N.Y. Ins. Law §3203(a)(5), a life policy must provide that if the insured's age was misstated, the amount payable is the amount the premium would have purchased at the true age. The policy is not voided; the benefit is simply adjusted to correct the pricing error. Because application statements are representations rather than warranties under §3204, an unintentional age error resizes coverage instead of destroying it.

Why the other options are wrong

• B) Voiding the policy from inception is warranty treatment; New York treats application statements as representations under §3204, absent fraud.
• C) Retaining premiums as a forfeiture is not a remedy under §3203(a)(5); the provision adjusts the benefit rather than forfeiting it.
• D) Paying the full face amount would ignore the pricing error; §3203(a)(5) requires an adjustment to the amount the premium would have purchased.

Memory hook

A wrong age resizes the policy; it never voids it.