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3.9.12 The Misstatement of Age or Sex Provision

The misstatement of age or sex provision allows the insurer to adjust the benefit payable if the age or sex of the insured was incorrectly stated when the application for the policy was made. In that case, benefit amounts payable will be what the premiums paid would have been had they been purchased at the correct age or sex. Since a life insurance policy's premiums are based largely on age and sex, if the policyowner had been paying lower premium rates (based on incorrect information), the policy's proceeds would need to be adjusted accordingly. The difference between what the individual should have been paying and what was actually paid would be deducted from the death benefit paid to the beneficiary. The provision is an exception to the Time Limit on Certain Defenses provision as it will be affected whenever the error is discovered, even beyond two years.