State RegulationsIL specificDifficulty 2/5
While settling a claim, an Illinois insurer discovers the applicant understated the insured's age, so the premiums paid were too low. Under 215 ILCS 5/224, what is the insurer's proper course?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
215 ILCS 5/224(1)(d) treats misstatement of age as an adjustment matter, not a voiding matter: the benefit is recomputed to what the premiums actually paid would have purchased at the correct age. The policy stays in force and the claim is paid on that adjusted basis, which is why age errors do not trigger the contestability or denial machinery used for other misstatements.
Why the other options are wrong
- B) The policy is not voided for an age misstatement; 215 ILCS 5/224(1)(d) directs an actuarial adjustment of the benefit instead.
- C) Age misstatements are not waived; the benefit is recalculated rather than paid at the full face amount.
- D) Denial is not the statutory remedy for age errors; the adjustment formula in 215 ILCS 5/224(1)(d) governs.
Memory hook
Wrong age, wrong benefit: recompute, don't void.