According to Pennsylvania insurance laws, what action can the insurance company take if the insured...

Under Pennsylvania Life Insurance law, policies are required to contain amisstatement of age provision. This provision addresses situations in which the insured unintentionally understates or overstates their age at the time of application. Pennsylvania-approved insurance study materials clearly state that age is a critical underwriting factor because it directly affects premium calculations and policy benefits.

When an incorrect age is discovered, the insurercannot cancel the policy or deny claims solely due to the mistake, provided the misstatement was unintentional. Instead, the policy benefits are adjusted to reflect what the premium would have purchased at thecorrect age. This means that all amounts payable under the policy—including death benefits—are recalculated proportionately based on the accurate age of the insured.

Option A is incorrect because unintentional age misstatements do not constitute material misrepresentation. Option B is incorrect because Pennsylvania law does not differentiate between current and future claims in this situation. Option D is incorrect because corrective action is allowed, even when the error was accidental.

Therefore, according to Pennsylvania Life Insurance regulations, the insurer mayreduce benefits to the amount that the paid premium would have purchased at the correct age, making option C the correct answer.