McCartney lied on his life insurance application. He said he was 40, but he was really 60. McCartney dies during the seventh year his policy is in force. When the insurance company finds out about the misstatement of age, what will it do?
A) Deny the claim, based on fraud
B) Pay the face value of McCartney's policy to his beneficiary
C) Pay some fraction of the face value of McCartney's policy to his beneficiary
D) Pay the face value of McCartney's policy to his beneficiary if the beneficiary submits documentation attesting to the fact that he/she knew nothing of the misstatement
C
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