Insurance Underwriting Practice Exam 2026 – Comprehensive Non-UK Guide

Quotations are based on the risk details provided when the quote is given. If the vehicle’s engine is changed after that, the risk has changed in a material way. Because the quote was calculated using the original engine, the insurer isn’t obligated to stick with those terms once the facts have changed. The insurer must re-evaluate the risk and can either issue a new quotation that reflects the new engine or choose not to cover under the old terms. That’s why the correct stance is that the insurer is not bound to honour the original quotation.