A&H Policy ProvisionsQuestion 36 of 315

When an insurer discovers that an insured's age was misstated on an A&H application, what is the typical result under the optional Misstatement of Age provision?

a.The policy is rescinded from the date of issue
b.The benefit or premium is adjusted to what the correct premium would have purchased
c.The insurer must refund all premiums paid
d.The policy continues unchanged because age has no effect on A&H

Explanation

The Misstatement of Age provision is a corrective remedy, not a voiding remedy. The benefit (or premium) is adjusted to what the correct age premium would have purchased; the contract stays in force.

Law Reference: Cal. Ins. Code §10369.7

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