In the United Kingdom, motor insurance companies and policyholders agree the 'utmost good faith', where both parties in the contract have to disclose the correct required information needed to create a policy.
[1] In cases where there is an outstanding claim and the insurance company detects incorrect or wrongly provided information (known as non-disclosure), they would class it as a breach of the contract terms and may terminate the policy or increase the premium (depending on the seriousness of the non-disclosure).
A maximum of £1,000,000 can be paid for third party property claims and the insurer may look to pursue their policyholder for the cost of any payments made.
An insurer may look to seek Article 75 status within RTA law if it transpires that the policyholder failed to declare an important fact (such as a drink-drive ban).
To do so, an insurer must apply for a declaration under Section 152(2) of the Road Traffic Act 1988 through the court system.