When completing the application for his life insurance policy with his agent, Blarney accidentally provides the wrong year of birth on the application. Three years later, the agent and the insurer discover the error and learn that Blarney is older than he indicated on his application. Which of the following CORRECTLY describes how the insurer is permitted to proceed and why?

a)		Since Blarney’s policy is in the incontestability period, the insurer can cancel the policy based on fraudulent misrepresentation.
b)		Since Blarney’s policy is no longer within the incontestability period, the insurer cannot cancel or make any changes to the policy.
c)		Since this would be a case of fraudulent misrepresentation, the insurer can cancel the policy.
d)		Since the misstatement in age was not deliberate, the insurer cannot cancel the policy but may adjust the coverage to match the premiums being paid.

Answer rating: 100% (QA)

Answers As it is wrongly mentioned not deliberately done so option ... View the full answer