Life Policy ProvisionsQuestion 540 of 716
Because a misstatement understated the insured's true (older) age, the premiums charged were too low. The adjusted death benefit will therefore be:
a.Higher than the stated face amount
b.Reduced to zero because the application was inaccurate
c.Exactly equal to the stated face amount
d.Lower than the stated face amount
Explanation
When the real age is older than stated, the premium paid was insufficient, so it would have purchased less coverage; the benefit is reduced accordingly. The policy is not voided, and the benefit is neither unchanged nor increased.
This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 716 questions free — no signup required.
Own the complete California Life & Health Insurance Producer Exam guide — PDF + EPUB, $19.99 →
Related questions on this topic
- Which of the following is NOT a typical requirement or effect of reinstating a lapsed life policy?
- A major advantage of reinstating a lapsed policy rather than buying a brand-new one is that:
- The insured's age was understated on a life application, and the error is found at the time of death. Under the misstatement of age provision, the insurer will:
- An insured dies by suicide 14 months after the policy was issued. The insurer will most likely:
- If suicide occurs after the policy's suicide-clause period (commonly two years) has elapsed, the insurer will:
- The free-look provision in a life insurance policy gives the policyowner the right to:
Last reviewed: · editorial process
PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)