Misstatement of Age
Misstatement of age occurs when the age of the insured person is recorded incorrectly on an insurance application or policy. Because age is a key factor in determining eligibility, premiums, and benefit amounts, any error - whether accidental or intentional - can affect the terms of coverage. The misstatement may be discovered during underwriting, at the time of a claim, or during a policy review.
How It Works
When a misstatement of age is identified, the insurer does not typically void the policy but instead adjusts the premiums or benefits to reflect the correct age. If the insured was younger than stated, the insurer may refund the excess premiums. If the insured was older, the insurer may reduce the death benefit or claim payment to match what the correct premium would have purchased at the true age. The exact treatment can depend on the province. Under Quebec's Civil Code, a misrepresentation of the insured's age does not nullify the insurance; instead the sum insured is adjusted in proportion to the premium collected versus the premium that should have been collected, and for accident or sickness insurance the insurer may instead elect to adjust the premium to the rate applicable to the true age. Under British Columbia's Insurance Act, the duty-to-disclose rule that lets an insurer treat a contract as voidable for a failure to disclose or misrepresentation does not apply to a misstatement of age.
Example:
Suppose you apply for an individual extended health and dental plan in Canada and your date of birth is entered so that the insurer records you as 40 when you are actually 43. Because age affects pricing, the insurer would correct the error once it is discovered rather than cancel the plan. Depending on the contract and your province, it might adjust your premium to the rate for your true age, or adjust the benefit so it reflects what the premiums you paid would have purchased at age 43. That is why double-checking your date of birth on the application matters.
What to Watch For:
A misstatement of age is a form of misrepresentation, which in Canadian insurance means inaccurate, incomplete, or misleading information given in connection with the risk when that information matters to the insurer's underwriting, pricing, eligibility, or policy terms, and it is not limited to deliberate fraud. Even an honest, accidental error in your stated age can change the terms of your coverage, including the benefits or premiums tied to it, so it is worth reviewing your date of birth carefully on the application and on your policy documents.
