Use the above table to answer this question. What insurance principle has Mr P Violated if he decides to overstate the actual value of his property?

Use the above table to answer this question.

What insurance principle has Mr P Violated if he decides to overstate the actual value of his property?

Answer Details

If Mr. P decides to overstate the actual value of his property, he has violated the principle of "Uberrimae fidei" or "utmost good faith". This means that when someone takes out an insurance policy, they have a duty to disclose all relevant and material information about the subject matter of the insurance to the insurance company. If the policyholder knowingly provides false or misleading information, it can be considered a violation of this principle. By overstating the value of his property, Mr. P is not acting in good faith and is not providing the insurance company with all the necessary information to properly assess the risk and determine the premium for the policy. This could have consequences for both the policyholder and the insurance company in the event of a claim.