If an insurer rejects a claim based on 'fraudulent device,' what does this imply about the insured's actions?

If an insurer rejects a claim based on 'fraudulent device,' what does this imply about the insured's actions?

• A. The insured did not cooperate with the insurer
• B. The insured made fraudulent statements to enhance the claim
• C. The insured delayed in reporting the claim
• D. The insured failed to provide necessary documentation

Answer: (B)

When an insurer rejects a claim based on 'fraudulent device,' it specifically implies that the insured engaged in dishonest or deceptive practices intended to inflate or falsely enhance the validity of the claim. This could include making false statements, submitting fabricated evidence, or manipulating circumstances to suggest that the loss or damage was greater than it actually was. This terminology indicates a clear intention on the part of the insured to mislead the insurer, which is a serious violation of the principle of utmost good faith that underlies insurance contracts. In this context, the focus is on the act of deceit related to the claim itself, rather than the procedural aspects of handling the claim (such as cooperation or timely reporting), which are indicated by the other choices.

When an insurer rejects a claim based on 'fraudulent device,' it specifically implies that the insured engaged in dishonest or deceptive practices intended to inflate or falsely enhance the validity of the claim. This could include making false statements, submitting fabricated evidence, or manipulating circumstances to suggest that the loss or damage was greater than it actually was.

This terminology indicates a clear intention on the part of the insured to mislead the insurer, which is a serious violation of the principle of utmost good faith that underlies insurance contracts. In this context, the focus is on the act of deceit related to the claim itself, rather than the procedural aspects of handling the claim (such as cooperation or timely reporting), which are indicated by the other choices.