When an insurance policy is declared void because of a false declaration ; the principle involved is
Answer Details
The principle involved when an insurance policy is declared void because of a false declaration is "utmost good faith". Utmost good faith is a principle that applies to insurance contracts, and it requires both parties (the insurer and the insured) to provide each other with complete and accurate information about the subject matter of the insurance contract. If the insured fails to provide accurate information or makes a false declaration, this can be considered a breach of utmost good faith, which can lead to the insurance policy being declared void or canceled. This means that the insurer is not obligated to pay any claims under the policy, and the insured may lose their premiums or any other payments made under the policy. Utmost good faith is an important principle that helps ensure that insurance contracts are based on accurate and complete information, and that both parties are aware of the risks involved in the insurance transaction.