With Regards to Mis-Statement of Age, Select the Valid Option:
I: An Under-Statement of Age, will result in the Original Policy being re-issued, for a Reduced Amount.
II: An Over-Statement of Age, will, usually, result in a Refund of Premium-Payment.
A)I, Only.
B)II, Only.
C)I and II.
D)Neither I, Nor II.

Question

Quizplus · Accepted Answer

In the context of insurance policies, if an individual under-states their age, the insurance company may adjust the benefits to correspond with the correct age, often resulting in a reduced amount of coverage. Conversely, if an individual over-states their age, the insurer may refund the excess premium paid due to the age overstatement, as the premium would have been calculated based on a higher age, leading to higher charges than necessary.