An insured intentionally understates her age on her application for a life policy. At death, the insurer will take which of the following actions?

A.Refuse to pay the claim based on material misrepresentation on the application

B.Pay the face amount of the policy if the death occurred after the end of the incontestable period

C.Pay a reduced Death benefit based on the insured's actual age

D.Pay the stated Death benefit less the unpaid premium owed to the company as a result of the understated age.

Answer: C

Life Insurance

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