What is misstatement of age/gender resolution?

• A. The death benefit is unchanged.
• B. The policy is void if misstatement occurs.
• C. The death benefit is adjusted to the correct value based on actual age/gender; premiums may also adjust.
• D. The policy automatically renews with no changes.

Answer: (C)

When there’s a misstatement of age or gender, the policy uses a correction provision to align what’s in force with the actual information. The death benefit is adjusted to the amount that would have been issued if the correct age or gender had been used, and premiums may be recalculated or adjusted accordingly. This prevents the policy from paying out a benefit based on incorrect risk, while keeping the contract in force rather than voiding it or changing nothing. For example, if the insured is actually older than stated, the death benefit and premiums are typically recalibrated to reflect the true age. Conversely, if the insured is younger, the benefit might increase or stay aligned with the lower risk, with premiums adjusted as needed.