An individual sickness and accident policy contains the optional misstatement of age provision. The policyholder's age on the application was understated, and a covered claim is now filed. What may the insurer do?

Why B is correct

Under the optional misstatement of age provision authorized by ORC 3923.05, an age error does not void an Ohio individual accident and sickness policy; instead, the insurer adjusts the benefits to the amount the premiums actually paid would have purchased at the insured's correct age. The practical consequence is that coverage stays in force and the claim is paid, just at the corrected level. This matches the way the Ohio Department of Insurance frames the optional A&H provisions: permissive clauses that modify benefits rather than cancel them.

Why the other options are wrong

• A) A mere age misstatement does not void the policy retroactively; under ORC 3923.05 the remedy is benefit adjustment, and only fraudulent misstatements after the 2-year period in ORC 3923.04(B) could avoid coverage.
• C) Increasing the benefits is the opposite of the rule: the lower premiums paid for a younger stated age purchased less coverage, so benefits go down, not up.
• D) Denying the claim while keeping the policy unchanged defeats the provision's purpose, which is to keep the policy in force and pay corrected benefits under ORC 3923.05.

Memory hook

Wrong age means wrong benefit, not no benefit.