Connecticut Life Insurance Producer State Practice Exam

When a misstatement of age is discovered in a life insurance policy, the coverage will be adjusted to reflect the insured's true age. Insurance premiums and benefits are typically determined by the age of the insured at the time of policy issuance. If that age is misstated, the insurer has the right to make corrections so that the policy reflects the accurate information.

For example, if an individual stated they were 30 years old when they were actually 35, the insurer would adjust the policy’s benefits and premiums based on the age of 35, which may lower or increase the death benefit or adjust the premium amount accordingly. This method ensures that the policy adheres to the underwriting guidelines based on the accurate age of the insured, maintaining fairness in the coverage provided.

In this context, the other options do not accurately represent the consequences of a misstatement of age. Coverage remaining unchanged regardless of age would not take into account the implications of incorrect information on premiums and benefits. Voiding coverage and refunding premiums is a more severe action that does not align with common practices for misstatements of age. Lastly, terminating the policy immediately would be an extreme measure that does not reflect the typical resolution for an age misstatement, as adjustments can often be made without