What is the effect of misstatement of age or sex in an insurance application?

The effect of a misstatement of age or sex in an insurance application primarily results in an adjustment of benefits based on the corrected information. Insurance policies are often priced and benefits calculated based on the insured's age and sex because these factors significantly influence the risk and cost associated with providing coverage.

When the correct age or sex is disclosed after a misstatement, the insurance company will adjust the policy accordingly to reflect what the benefits would have been had the correct information been provided at the time of application. This could mean an increase or decrease in benefits, depending on the specific terms of the policy and the misstatement.

For instance, if a younger applicant was mistakenly stated as older, the benefits might be reduced to match those that would have been applied to the correct age. Conversely, if the misstatement favored the insured (e.g., making an older applicant appear younger), the insurer would adjust benefits to align with the facts as per the coverage terms that apply to their actual age or sex.

This makes the understanding of how information is processed in insurance applications crucial for both insurers and insured parties, emphasizing the importance of accuracy in application submission.