What is the most likely consequence of a deliberate breach of the duty of fair presentation by the insured?

A deliberate breach of the duty of fair presentation generally results in severe consequences for the insured, reflecting the importance of honesty and transparency in the insurance contract. When the insured intentionally fails to disclose material information or provides misleading information, the insurer is placed in a position where it cannot accurately assess the risk being taken on.

As a consequence of such a breach, the insurer has the legal right to avoid the policy, which means they can declare the insurance contract null and void. This avoidance allows the insurer to refuse any claims made under the policy, effectively denying coverage for losses that might have been insured had the information been presented fairly. Additionally, the insurer is not obligated to refund any premiums paid, as the contract is considered void from the outset due to the lack of a truthful foundation.

This understanding emphasizes the critical nature of the duty of fair presentation in insurance contracts, where both parties need to trust that the information exchanged is accurate and complete. Thus, the correct answer accurately reflects these consequences of a deliberate breach.