The Effect of a Misstatement-Of-Age Clause in a Health Insurance

Multiple Choice

The effect of a misstatement-of-age clause in a health insurance contract is that

A) no benefits will be paid if it is shown that the insured intentionally misrepresented his or her age,
B) benefits will be paid based on the age represented in the application if two years pass before the discovery of the misstated age,
C) the policy will be voidable at the option of the insurer, and if the insurer decides to void the policy it must return all premiums collected with reasonable interest,
D) the benefits will be adjusted to equal the benefits that could have been purchased had the true age been known.