L&HIllinoismedium
Under 215 ILCS 5/224(1)(d), if a misstatement of age is discovered on an Illinois individual life policy, how must the death benefit be adjusted?
AThe policy is rescinded and premiums are refunded
BThe insurer must pay the full face amount regardless of the misstatement
CThe beneficiary forfeits all benefits
The amount payable is adjusted to what the premium paid would have purchased at the correct age
Why this is the answer
215 ILCS 5/224(1)(d) sets the standard misstatement-of-age remedy in Illinois: the death benefit (or other amount payable) is recalculated to the amount that the premium actually paid would have purchased at the insured's true age. The policy is not rescinded, premiums are not refunded, and the misstatement remains correctable even after the 2-year incontestable period.
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