L&HGeorgiamedium
Under O.C.G.A. § 33-25-3, if an insured's age was misstated on a Georgia life insurance application and the misstatement is discovered after a death claim, how must the death benefit be adjusted?
AThe policy is rescinded and premiums refunded
The amount payable is the benefit the premiums paid would have purchased at the correct age
CThe death benefit is paid in full regardless of the misstatement
DThe death benefit is reduced by 50% as a penalty
Why this is the answer
Georgia's mandatory misstatement-of-age provision in O.C.G.A. § 33-25-3 protects both parties when an insured's age was wrong on the application. Rather than rescinding the policy (which is barred after the two-year contestability period anyway), the insurer adjusts the death benefit upward or downward so that it equals what the premiums actually paid would have purchased at the insured's correct age. The contract remains in force; only the benefit amount is recalculated.
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