Good question, but they could waive the insurance.
Exceptions to the legal requirement to have mortgage protection insurance
You do not have to take out mortgage protection insurance if:
You are over 50 years old
The mortgage is not on your principal private residence (your home)
You already have enough life insurance to pay off the home loan if you die
You cannot get this insurance, for example, because of a current serious illness or dangerous job
So I suppose that if a 45 year old applied for a mortgage and asked for a policy to age 80 and was refused, MoCo would accept that.
Brendan