Which statement about the Misstatement of Age provision is true?

The statement about the Misstatement of Age provision that is true is that coverage will be adjusted to reflect the insured's true age. This provision is included in life insurance policies to address situations where the insured has inaccurately stated their age during the application process.

If a policyholder's age is misrepresented, the insurance company has the right to adjust the benefits or premiums based on what the insured's age should have been at the time of application. This means that the life insurance coverage could be modified to reflect the premiums that would have been charged for the correct age, or the coverage amount could be recalculated based on the actual age. This adjustment helps maintain fairness in the insurance contract and ensures that the insurer is not at a disadvantage due to the misstatement.

The other statements do not accurately reflect the typical handling of misstatements of age. For example, terminating the coverage entirely upon discovery would be too severe for a common error, and while refunds may occur, they do not usually happen at full value, as that would not reflect the adjusted premiums for the correct age. Additionally, beneficiary rights are generally not affected by the misstatement itself, as the policy remains in effect; however, the benefit amount may change based on the adjusted age.