L&HPennsylvaniamedium
A PA life insurance policy issued under 40 P.S. § 510 discovers at the insured's death that the insured's age was understated on the application. What is the proper claim adjustment?
AThe policy is voided and premiums refunded
BThe death benefit is paid in full with no adjustment
The death benefit is adjusted to the amount the premiums paid would have purchased at the correct age
DThe insurer may rescind only if the misstatement was intentional, voiding the contract entirely and returning all premiums paid without interest
Why this is the answer
Under PA's standard misstatement of age (or sex) provision, the policy is not voided. Instead, the benefit is recalculated to the amount that the premiums actually paid would have purchased had the correct age been used on the application.
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