Question

Which action will a life insurance company most likely take if an insured dies, and it is discovered the insured's age was misstated on the application?

a) Pay the death benefit as originally stated
b) Adjust the death benefit based on the correct age
c) Void the policy and refund premiums
d) Deny the claim and return premiums

Answer 1

If an insured's age is misstated on the application, the life insurance company will most likely adjust the death benefit based on the correct age.

Step-by-step explanation:

If an insured's age is misstated on the application, a life insurance company will most likely adjust the death benefit based on the correct age. This means that the insurance company will modify the payout amount to reflect the insured's actual age at the time of death. For example, if the insured claimed to be 50 years old but was actually 55, the death benefit may be adjusted to reflect the higher premium associated with a 55-year-old individual.