Untrue statements or unfulfilled promises by the insured permit the insurer to declare the policy void.

Question

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Insurance policies are contracts based on the principle of utmost good faith, meaning that both parties, the insurer and the insured, must be completely honest with each other. If the insured makes untrue statements or unfulfilled promises (misrepresentations) at the time of entering into the policy, these can be considered breaches of this principle, allowing the insurer to declare the policy void.

Untrue Statements or Unfulfilled Promises by the Insured Permit the Insurer