Policy Structure & ProvisionsPregunta 461 de 474
An applicant deliberately hides a history of arson losses. Under the concealment, misrepresentation and fraud condition, the insurer may:
a.Deny only the losses caused by arson
b.Cut the payment by the hidden amount
c.Raise the premium at the next renewal
d.Void the coverage for that insured
Explicación
The condition lets the insurer treat coverage as void where an insured intentionally conceals or misrepresents a material fact, engages in fraudulent conduct or makes false statements, whether that happens in the application or after a loss. Materiality is the test: a fact that would have changed the underwriting decision. Repricing at renewal is an underwriting response, not the remedy this condition provides.
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