Mis-statement of age and non- avoidance of policy

(1) A policy shall not be avoided by reason only of a misstatement of the age of the person whose life is insured. Misstatement of (1A) Where the true age as shown by the proof is greater than that on which the policy is based, the company may vary the sum insured by, and the bonuses (if any) allotted to, the policy so that, as varied, they bear the same proportion to the sum insured by, and the bonuses (if any) allotted to, the policy before variation as the amount of the premiums that have become payable under the policy as issued bears to the amount of the premiums that would have become payable if the policy had been based on the true age. (1B) where the true age as shown by the proof is less than that on which the policy was based, the company shall either– (a) vary the sum insured by, and the bonuses (if any) allotted to, the policy so that, as varied, they bear the same proportion to the sum insured by, and the bonuses (if any) allotted to, the policy before variation as the amount of the premiums that have become payable under the policy as issued bears to the amount of the premiums that would have become payable if the policy had been based on the true age; or (b) reduce, as from the date of issue of the policy, the premium payable to the amount that would have been payable if the policy had been based on the true age and repay the policyholder the amount of overpayments of premium less any amount that has been paid as the cash value of bonuses in excess of the cash value that would have been paid if the policy had been based on the true age. (2) A policy issued after the commencement of this Act shall not be avoided by reason only of any incorrect statement (other than a statement as to the age of the person whose life is insured) 135 made in any proposal or other document on the faith of which the policy was issued or reinstated by the company unless the (a) was fraudulently untrue; or (b) being a statement material in relation to the risk of the company under the policy, was made within the period of three years immediately preceding the date on which the policy is sought to be avoided or the date of the death of the person whose life is insured, whichever is the earlier. relating to state