Which of the following actions does an insurer take when an applicant's age is misstated?

When an applicant's age is misstated, the correct action that an insurer takes is to adjust the benefits according to the correct age. This is based on the principle that insurance premiums and coverage amounts are often influenced by the applicant's age at the time of application. If a mistake regarding age is discovered, the insurer recalibrates the benefits to reflect the actual age rather than the age that was initially misstated.

For instance, if an individual stated they were younger than their actual age, they might have been classified into a lower premium and potentially higher coverage amount than what they would qualify for at their true age. Consequently, the insurer will correct this by realigning the benefits based on the accurate age, ensuring that the policy remains fair and reflective of the appropriate risk level.

In this context, other options do not align with standard insurance practices. Providing benefits only for the younger age stated would be unjust to the insurer's calculations of risk and would not adhere to the principles of coverage based on accurate data. Referring the case for further investigation is not typically required on a simple age misstatement; rather, correcting the benefits suffices. Finally, refunding all premiums paid is not a standard procedure when an age discrepancy occurs; instead, the benefits are