The Misstatement of Age provision in an Accident and Health policy allows an insurance company to take which of the following actions if an insured has understated the insured's age on the policy application?

Increasing the premium is not a permitted action under the Misstatement of Age provision. While age can influence premium calculations, the policy specifically allows for benefit adjustments rather than premium alterations when age discrepancies are discovered. Premium adjustments typically follow different underwriting processes unrelated to age misstatements.

Lapsing coverage is not an action that can be taken solely due to a misstatement of age. The Misstatement of Age provision is designed to maintain coverage while making necessary adjustments to benefits. Lapsing coverage would imply a failure to pay premiums or other policy violations that are not directly tied to age misrepresentation.

Canceling the policy is also not an action allowed under the Misstatement of Age provision. This provision aims to correct inaccuracies related to age without terminating the coverage. A cancellation would typically occur due to more serious violations or noncompliance with policy terms, which is not applicable in cases of age misstatement alone.