Misstatement Of Age
An insurer cannot terminate an insurance contract for a mistake or misrepresentation of the age the life insured — even if intentional. Instead, the insurer recalculates the policy benefits based on the correct age and the premiums paid.
- e.g., death benefit multiplied by (premium charged)/(correct premium)
\begin{align} Correct Death Benefit = \frac{Premium Charged} {Correct Premium} \times Original Death Benefit \end{align}
page revision: 9, last edited: 16 Jun 2007 01:07