Which provision allows an insurer to adjust the policy benefits if there is a misstatement of age or sex?

Which provision allows an insurer to adjust the policy benefits if there is a misstatement of age or sex?

• A. Misstatement of Age or Sex
• B. Incontestability
• C. Reinstatement
• D. Payment of Claims

Answer: (A)

Misstatement of age or sex is the provision that lets the insurer adjust the policy’s benefits to reflect the insured’s true age or sex when the information used to issue the policy was incorrect. The premium and coverage are based on accurate risk, so once the true age or sex is known, the insurer recalculates as if that correct information had been used from the start. In practice, if the insured is older than stated, the death benefit may be reduced to what the premium would have bought at the correct age; if younger, the benefit could rise or the premium adjusted accordingly. This keeps the contract fair without canceling coverage, while other provisions like incontestability, reinstatement, or claims payment don’t address adjusting benefits for misstatements.

Misstatement of age or sex is the provision that lets the insurer adjust the policy’s benefits to reflect the insured’s true age or sex when the information used to issue the policy was incorrect. The premium and coverage are based on accurate risk, so once the true age or sex is known, the insurer recalculates as if that correct information had been used from the start. In practice, if the insured is older than stated, the death benefit may be reduced to what the premium would have bought at the correct age; if younger, the benefit could rise or the premium adjusted accordingly. This keeps the contract fair without canceling coverage, while other provisions like incontestability, reinstatement, or claims payment don’t address adjusting benefits for misstatements.