What principle can prevent an insurer from denying a claim due to previous actions or allowances?

Promissory estoppel is the principle that can prevent an insurer from denying a claim based on previous actions or allowances. This legal doctrine asserts that if one party makes a promise, which the other party reasonably relies on, the first party may be held to that promise, even in the absence of a formal contract. In the context of insurance, if an insurer has acted in a way that leads the insured to reasonably expect that coverage will be provided (such as accepting premiums or acknowledging a claim), the insurer may be estopped from denying the claim later due to prior actions or representations.

This principle is particularly relevant in situations where the insured has made decisions or taken actions based on the insurer's behavior, creating a situation of reliance that would be unjust to disregard. Promissory estoppel thus serves to uphold fairness and prevent potential harm to the insured resulting from the insurer's contradictory stance.