What principle prevents claim denial due to a false statement relied upon by the insured?

The principle that prevents claim denial due to a false statement relied upon by the insured is known as estoppel. Estoppel is a legal doctrine that prevents a party from asserting a claim or fact that is contrary to a previous action or statement made by that party, especially if that statement was relied upon by another party.

In the context of an insurance claim, if the insurer has led the insured to believe that a particular statement or representation is true or has acted in a manner that signifies it's a true representation, the insurer cannot later deny a claim based on the false statement if the insured relied on it. This principle upholds fairness and prevents insurers from taking unfair advantage of insureds who have placed their trust in the statements made by the insurer.

In contrast, exclusions are specific provisions in insurance policies that outline what is not covered, endorsements modify the terms of the policy, and subrogation refers to the right of an insurer to pursue a third party responsible for a loss after compensating the insured. None of these concepts directly relate to the protections offered by the principle of estoppel concerning false statements.