Any increased risk caused by the insured releases the insurer from liability.

Question

Quizplus · Accepted Answer

The statement is true because it is a general principle of insurance law that any increased risk caused by the insured releases the insurer from liability. This is because the insurer has a right to rely on the information provided by the insured in order to assess the risk and set the premium. If the insured increases the risk without informing the insurer, then the insurer is no longer bound by the contract.

Any Increased Risk Caused by the Insured Releases the Insurer