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WAEC Commerce 1995 Question 39

Question 39

Insurance

When an insurance policy is declared void because of a false declaration the principle involved is

  1. A.indemnity
  2. B.insurable interest
  3. C.proximate cause
  4. D.utmost good faith
  5. E.subrogation
Show the answer and explanation

Answer: D (utmost good faith)

Explanation

Utmost good faith requires the insured to disclose all facts truthfully; a false declaration makes the policy void.