Where an Insured Party Intentionally Understates Their Age on a Life

question 37

Multiple Choice

Where an insured party intentionally understates their age on a life insurance policy,the insurer has the option to:

• A)reduce the premiums payable and repay the overpaid premiums with interest.
• B)cancel the policy.
• C)increase the sum insured proportionately.
• D)reduce the sum insured proportionately.

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Definitions:

Contract Law

The branch of legal study that deals with the formation, enforcement, and interpretation of agreements between parties.

Co-Insurance Clause

A provision in insurance policies that requires the insured party to bear a portion of the loss, promoting the insured's interest in the property's safety.

Fire Insurance

A type of property insurance that covers damage and losses caused by fire.

Policyholder

An individual or entity who owns an insurance policy and is entitled to coverage and benefits under the policy terms.