On receiving documentation for motor insurance from his insurer, Mr Jones realizes he must disclose an engine size error when?

The correct answer emphasizes the importance of transparency and accuracy in the underwriting process for motor insurance. When Mr. Jones receives his documentation and identifies an error regarding the engine size, he must disclose this information immediately.

This required prompt disclosure is underpinned by the principle of utmost good faith (uberrima fides) in insurance contracts, which obligates policyholders to provide accurate and complete information to their insurers. Failure to disclose such information right away could potentially lead to issues when the insurer evaluates the risk associated with the policy or if claims are made.

Timely disclosure helps ensure that the insurer can make informed decisions regarding coverage and premiums. Correcting the error immediately can prevent misunderstandings or complications in the future, particularly if the engine size affects the premium calculation or the terms of the policy.

In contrast, waiting until payment of premium, the first renewal, or at the time of making a claim does not align with the duty of disclosure that policyholders must uphold. Such approaches could jeopardize the validity of the insurance contract in the event of a claim or become problematic during annual reviews of the policy.