At application a Buffalo man overstated his age. After his death the insurer discovers he was actually younger than stated. Under the misstatement-of-age provision, the insurer must:

Why B is correct

Under N.Y. Ins. Law §3203(a)(5), the death benefit is adjusted to the amount the premium paid would have purchased at the insured's correct age. The adjustment works in both directions: because the true age is younger than the age stated, the same premium would have bought more coverage, so the amount payable is larger than the stated face amount.

Why the other options are wrong

• A) Paying only the stated face amount ignores the required adjustment under §3203(a)(5); the benefit follows the premium at the true age.
• C) A misstatement of age is not grounds for denial; absent fraud, application statements are representations rather than warranties under N.Y. Ins. Law §3204.
• D) Rescission with a premium refund is not the remedy; the misstatement-of-age provision adjusts the benefit rather than voiding the contract.

Memory hook

The adjustment works both ways: a younger true age buys a bigger benefit.