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

A. Indemnity
B. Insurable interest
C. Uberrimae fidei
D. Subrogation

Correct Answer:

Option C – Uberrimae fidei

Explanation

Uberrimae fidei means utmost good faith. This is an insurance principle used in insurance contracts, legally obliging all parties to reveal to the others any information that might influence the others’ decision to enter into the contract. If Mr. P overvalued his property, that means he wasn’t honest and have violated the principle of utmost good faith,