Marcella purchases a modified life insurance policy at the age of 31. Thinking she could get a slightly better rate on her policy, she lists her age as 21. If the insurance company discovers the error upon Marcella's death, what action will the insurance company take?
The insurance company will pay the death benefit, but it will be reduced based on what the premium should have been with Marcella's correct age. Take note: even an intentional misstatement of age is not considered material enough to void the policy.
The correct answer is: Pay the death benefit based on Marcella's actual age T/F

If the insurance company discovers the error upon Marcella's death, what action will the insurance company take? The insurance company will pay the death benefit, but they Cannot reduce what the premium should have been with Marcella's correct age. because she has already been insured.

so It is False that they will Pay the death benefit based on Marcella's actual age.

Explanation:

They will have to pay based on the insured agreement with her before her death because the should have confirmed her real age before her death.

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