Haruto bought life insurance when he was 47, although he told the insurance company that he was 42. He has since died. Which of the following provisions will affect the amount of m... Haruto bought life insurance when he was 47, although he told the insurance company that he was 42. He has since died. Which of the following provisions will affect the amount of money his beneficiaries will receive?
Understand the Problem
The question is asking which insurance provision affects the amount of money beneficiaries will receive when the insured person misreported their age when purchasing a policy. This involves understanding life insurance terms and their implications.
Answer
Misstatement of age provision
The final answer is the 'Misstatement of age provision'.
Answer for screen readers
The final answer is the 'Misstatement of age provision'.
More Information
The 'Misstatement of age provision' adjusts the benefit or premium if the insured’s age is misstated. This ensures fair policy terms relative to the actual risk assessed.
Tips
A common mistake is confusing the incontestability clause with provisions that adjust benefits based on age misstatements.
Sources
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