What principle prevents an insurer from denying a claim based on misleading information given by the agent?

The principle that prevents an insurer from denying a claim based on misleading information provided by an agent is estoppel. This legal doctrine ensures that when one party makes representations or takes actions that lead another party to reasonably rely on those actions, the first party cannot later contradict those representations to the detriment of the second party.

In the context of insurance, if an agent provides misleading information that the insured party relies on when filing a claim, the insurer may be estopped from denying the claim based on that misinformation. This is because policyholders should be able to trust the representations made by their agents, which are considered part of the insurer's obligations, effectively binding the insurer to those representations.

The other options, while relevant in different contexts, do not specifically address the situation of misleading information from an agent in the same way estoppel does. Waiver refers to the voluntary relinquishment of a known right, which might apply in certain claims scenarios, but does not specifically address agent misrepresentation. Concealment relates to the intentional withholding of material facts by the insured, and disclosure refers to the provision of necessary information, which are not applicable in this context. Therefore, estoppel is the most appropriate principle that protects claimants against reliance on misleading information from their agents