LLQP Accident & Sickness · Component 2.1 · 30% of the exam
The 'misstatement of age' provision in an A&S policy provides that:
- AAll premiums are refunded with interest and the policy is reissued at the correct age
- BNothing happens, since the insurer accepted the application as it was submitted
- CThe policy is void from inception and any claim under it is denied
- Benefits are adjusted to what the premium paid would have bought at the correct age
Correct answer: D) Benefits are adjusted to what the premium paid would have bought at the correct age
Age misstatement is corrected by adjustment, not forfeiture, unless the true age was uninsurable. This mirrors the life insurance rule.
Why the other options are wrong
- ABenefits are adjusted; premiums are not simply refunded.
- BThe insurer will adjust the benefit or premium.
- CVoidance is only for ages outside the insurer's issue limits.
Exam tip
Misstated age → benefit adjusted to the premium paid.
Common mistake
Telling a client an age error voids the policy.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.