Final answer:
The Misstatement of Age provision adjusts the amount payable and premium payments retroactively if a person's age is misstated in an insurance policy.
Step-by-step explanation:
The Misstatement of Age provision in an insurance contract stipulates that if the age of the insured is misstated, the amount payable under the policy will be adjusted according to the correct age at the time the insurance was purchased. This could result in a decrease or increase in the death benefit, depending on whether the insured is found to have been younger or older than stated. The premium payments will also be retroactively adjusted to what they would have been if the correct age had been known from the start, which might affect the policy's cash value or the payout amount in a substantial way.