If a policyholder's age is misstated, what action might the insurer take?

• A. If age is misstated, the insurer may adjust benefits or premiums, or in some cases deny or revise the claim.
• B. Age misstatements are always ignored after policy issue.
• C. It never affects premiums.
• D. It results in automatic policy cancellation.

Answer: (D)

When age is misstated, it’s a material misrepresentation because age directly affects premium calculations and the amount of benefits. The insurer’s typical remedy is to adjust the policy to reflect the correct age, which can mean changing premiums and/or changing the benefit amounts. If a claim has been made, the insurer may also deny or revise the claim based on the corrected age.

Automatic policy cancellation isn’t a standard or guaranteed consequence of a misstatement in age; cancellation would depend on the specific policy terms and whether the misstatement is considered grounds for rescission. So the most accurate action described is to adjust premiums or benefits, or potentially deny or revise a claim.