<table class='tbn'><tbody><tr><td> <b>NAME</b> </td><td> <b>INSUREDAMOUNT(₦)</b> </td><td> <b>ACTUALVALUE(₦)</b> </td><td> <b>ACTUALLOSS(₦)</b> </td></tr><tr><td> Mr. PMr. KMr. R </td><td> 25,00030,00040,000 </td><td> 100,000120,000150,000 </td><td> 30,00040,00050,000 </td></tr></tbody></table><br/>What insurance principle has Mr. R violated if he decides to overstate the actual value of his property?
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Correct Answer: Option B
Explanation:
The principle of uberrimae fidei means "utmost good faith." It requires the person taking out the insurance to be completely honest and disclose all material facts truthfully. If Mr. R decides to overstate the actual value of his property, he is making a false declaration to try and get a larger payout. This deliberate misrepresentation is a direct violation of the duty to act with utmost good faith.
The principle of uberrimae fidei means "utmost good faith." It requires the person taking out the insurance to be completely honest and disclose all material facts truthfully. If Mr. R decides to overstate the actual value of his property, he is making a false declaration to try and get a larger payout. This deliberate misrepresentation is a direct violation of the duty to act with utmost good faith.