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

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.