If age was misstated on a policy and corrected later, what might the insurer do?

• A. Cancel the policy immediately.
• B. Adjust benefits or premiums based on corrected age.
• C. Refuse any claims.
• D. Lock in the original benefits indefinitely.

Answer: (B)

Age is a fundamental factor that determines both premium levels and benefit amounts. When an age was misstated and is corrected, the policy is typically adjusted to reflect the insured’s true age, which means recalculating the premiums and the benefits accordingly. This adjustment aligns the coverage with the actual risk the insurer is taking on, and it can be applied from the date of correction or from the policy issue date, depending on the contract. The policy remains in force as long as premiums are paid and the misstatement is corrected, rather than canceling the policy or denying claims outright. So the insurer would adjust benefits or premiums based on the corrected age.