What action can an insurance company take under the Misstatement of Age provision if the insured has understated their age on the application?

When an insured has understated their age on the application, the insurance company can adjust benefits under the Misstatement of Age provision. This provision is designed to address the discrepancies between the age stated on the application and the actual age of the insured.

By adjusting benefits, the insurance company can ensure that the payouts and coverage amounts reflect the true risk associated with the insured's actual age. Age plays a critical role in determining premiums and benefits, as older individuals generally carry a higher risk of mortality, which can affect the policy's value.

In this context, if the insured's age is found to be greater than what was stated, the insurer may reduce the death benefit to an amount that corresponds with the premiums paid, adjusted for the correct age. This allows the company to maintain a fair and equitable insurance pool while addressing the misstatement without resorting to cancellation or modifying the overall terms of the coverage.