If a policyholder's claim on a fraudulent policy is denied, how much of the premium can they reclaim?

When a claim on a fraudulent policy is denied, the policyholder is typically not entitled to reclaim any of the premium paid for that policy. This principle is rooted in the idea that insurance contracts are based on the principle of utmost good faith (uberrima fides). If the policyholder has engaged in fraud, they violate this principle, which voids the policy.

Fraud undermines the integrity of the insurance contract, as the insurer relies on accurate and honest information when underwriting policies and settling claims. Therefore, if someone has obtained a policy through fraudulent means, it's considered that no valid contract ever existed in the first place, which justifies the denial of the claim and the forfeiture of the premium. Any premiums paid under false pretenses are not refundable because the policy is invalidated by the policyholder's actions.