Which of the following actions can lead to voided coverage due to non-compliance with policy terms?

Material misrepresentation is a critical concept in insurance that can directly lead to voiding coverage. This occurs when an insured party provides false information or omits important facts when applying for insurance. Insurance contracts are based on the principle of utmost good faith, meaning that both parties must disclose relevant information honestly. If an insurer discovers that the insured knowingly provided incorrect or misleading information, it may invalidate the contract. This is because the insurer relied on that truthful representation when determining the terms of coverage and the risk involved.

When a material misrepresentation comes to light, it negates the basis upon which the insurance policy was issued, meaning the insurer may deny any claims related to that policy or even cancel it entirely. Robust guidelines in insurance emphasize the importance of accurate disclosures, as they fundamentally affect the risk assessments and the pricing of premiums.

Other actions listed, while they may complicate or delay the claims process or affect the smooth operation of a policy, do not inherently lead to the voiding of coverage. For instance, a waiver is an agreement to relinquish a right or claim, which might not affect the validity of coverage itself. Inaccurate reporting could lead to issues or potential disputes, but discrepancies in reports may not reach the level of material misrepresentation needed to