Which scenario would most likely lead to a claim denial by an insurance company?

Discrepancies in material facts during claim processing can significantly jeopardize an insurance claim. When an insurance company processes a claim, they rely heavily on the information provided by the insured party. If there are inconsistencies or contradictions in the details provided—such as inaccurate statements about the circumstances of the incident or the insured property—it raises concerns about the credibility of the claim. Insurance contracts are based on the principle of utmost good faith (uberrima fides), meaning that both parties are expected to be honest and forthright. If the insurance company discovers that critical facts were misrepresented or omitted, it may lead to a denial of the claim, as these discrepancies could imply that the risk was not accurately disclosed, thus breaching the terms of the insurance agreement.