What must the company do if a misstatement of age or gender is discovered?

When a misstatement of age or gender is discovered, the company is required to adjust the face amount of the policy to accurately reflect what the premiums would have been if the correct age or gender had been provided at the time of application. This ensures that the insurance coverage aligns with the correct risk assessment based on accurate information. Adjusting the face amount is a standard practice that maintains the integrity of the policy without penalizing the policyholder for an innocent error.

This process is crucial because age and gender are significant factors in underwriting and determining premium rates. By making this adjustment, the insurer can provide a fair resolution that aligns with the original intent of the policyholder while also adhering to underwriting standards.