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In insurance, when an insurer neglects to pay a legitimate claim covered by the policy, which insurance principle has been violated, and what does this principle entail?

Answer :

Final answer:

When an insurer neglects to pay a legitimate claim covered by the policy, the insurance principle that has been violated is the principle of good faith.

Explanation:

The insurance principle that has been violated when an insurer neglects to pay a legitimate claim covered by the policy is the principle of good faith. This principle entails that both the insurer and the insured act in good faith and deal fairly with each other. Insurers are expected to act promptly and honestly in assessing claims, and failure to do so violates the principle of good faith.

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