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Ivenika [448]
3 years ago
7

When an insured purchased her disability income policy, she misstated her age to the agent. She told the agent that she was 30 y

ears old, when in fact, she was 37. If the policy contains the optional misstatement of age provision (Choose from the following options)
1. The elimination period will be extended 6 months for each year of age misstatement.
2. Because the misstatement occurred more than 2 years ago, it has no effect.
3. Amounts payable under the policy will reflect the insured's correct age.
4. The contract will be deemed void because of the misstatement of age.
Social Studies
1 answer:
kramer3 years ago
4 0

Answer: L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the  application. Under the Misstatement of Age provision, the insurer will adjust the death benefit to a reduced amount.

A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has Waiver of premium attached to it.

Explanation:

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