What is an insurer required to do when faced with an error made under the Misstatement of Age provision?

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What is an insurer required to do when faced with an error made under the Misstatement of Age provision?

a) Cancel the policy
b) Pay age-corrected benefits
c) Pay full benefits as stated in the policy
d) Bill the policyowner for back premiums

Answer: b) Pay age-corrected benefits

WA Life Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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