What happens if misstatement of age is discovered after the contestability period ends?

• A. The policy generally remains in force with no retroactive premium adjustment.
• B. The insurer can rescind the policy.
• C. The premiums are retroactively increased for all past years.
• D. The policy is automatically converted to universal life.

Answer: (A)

Misstatement of age is treated differently depending on whether the misstatement is found within or after the contestability period. The contestability period (often the first two years) gives the insurer the right to review the applicant’s statements. If a misstatement is discovered during that time, the insurer can take actions like rescinding the policy or adjusting benefits and premiums based on the correct information.

After the contestability period ends, the insurer can’t use misstatement of age to void or cancel the contract, and retroactive premium changes aren’t typically made. The policy generally remains in force as written, and future premiums are not adjusted retroactively due to the age misstatement.

So, the policy stays in force with no retroactive premium adjustment. The other options would only apply within the contestability window or are not connected to how age misstatements are handled post-period.