A life insurer may backdate a policy to treat the insured as younger. This statement is:

• A. True.
• B. False.
• C. Only under state waiver.
• D. Only if the insured is under 18.

Answer: (A)

Backdating to treat the insured as younger is a legitimate underwriting practice used to lower premiums. A life insurer may set the policy’s issue date as if it occurred up to a limited window before the actual application date—commonly six months—so the premium is based on the younger age as of that backdated date. This retroactive dating means the coverage starts earlier and the insured pays the premium for the younger age, provided the insured would have been medically insurable at that younger age and the action complies with state rules and the policy terms. If the applicant would not have qualified for coverage at the younger age, or the backdating window is exceeded, backdating wouldn’t apply. So the statement is true.