Florida Life and Health Insurance License Test 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

If J, an AD&D policy holder, dies after an accident and his age was understated by ten years on the application, what action will the insurance company take?

Cancel the policy

Pay the full benefit amount

Deny the claim

Adjust the benefit to what was paid for at the actual age

The insurance company will adjust the benefit to what was paid for at the actual age, rather than the understated age on the application. This is because misrepresenting personal information on an insurance application can result in a voided policy or penalty, but not necessarily denial of a claim. Canceling the policy or denying the claim would be extreme actions for the insurance company to take in this situation. Paying the full benefit amount would also not be an appropriate response, as it would be based on incorrect information and could lead to fraudulent claims in the future. Therefore, adjusting the benefit to what was paid for at the actual age is the most reasonable and fair action for the insurance company to take in this scenario.

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