State RegulationsOH specificDifficulty 1/5
An insurer in Springfield discovers after a claim that the insured's age was misstated on the application, so the premiums paid were too low. Under the Ohio standard provisions, what is the effect?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
ORC 3915.05(E) requires the policy to contain a misstatement-of-age provision under which the amount payable is what the premiums would have purchased at the correct age. Age misstatements are adjusted, not used to void: the insurer recalculates the benefit proportionately to what the actual premiums would have bought under the true age. This keeps coverage intact while removing any financial advantage from the misstatement.
Why the other options are wrong
- A) A pure age misstatement does not void the policy; ORC 3915.05(E) mandates an equitable adjustment instead.
- B) Premiums are not refunded and the policy is not cancelled; the death benefit is simply recomputed at the correct age under ORC 3915.05(E).
- C) Outright denial is improper; ORC 3915.05(E) requires payment of the amount the premiums would have purchased at the correct age.
Memory hook
Wrong age? Recalculate, don't rescind.