L&HMImedium
Under MCL 4010-4036, how must a Michigan life insurer adjust the death benefit if the insured's age was misstated on the application?
APay the face amount but require the beneficiary to repay any premium shortfall
BVoid the policy and refund all premiums paid
CPay the face amount in full regardless of the misstatement
Pay the amount the premium paid would have purchased at the correct age
Why this is the answer
Michigan's misstatement-of-age provision under MCL 4010-4036 does not allow the insurer to void the policy. Instead, the death benefit is adjusted up or down to the amount the premium actually paid would have purchased at the insured's correct age.
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