McCartney lied on his life insurance application. He said he was 40, but he was really 60. McCartney dies during the seventh year his policy is in force. When the insurance company finds out about the misstatement of age, what will it do?

Question

Quizplus · Accepted Answer

The insurance company will adjust the death benefit to what the premiums paid would have purchased at the correct age, resulting in a fraction of the face value being paid to the beneficiary.

McCartney Lied on His Life Insurance Application