Whilst taking out insurance for the premises Melissa notifies the insurance agent that she has security cameras, alarms, gates, fences, and lighting. This is not factually correct, and Melissa knows that this will help lower her premium. She also omits to note that there have been 4 accidents with her company vehicles in the last year. She receives a reasonable premium based on the information she submits. Six months into her lease agreement, Melissa arrives at her showroom to find a cracked window, and a bent window frame. She believes that this may have been an attempted robbery. Although the damage was minor, she considered exaggerating the claim for a larger insurance payout, which she believes will cover the new furniture she has been wanting for the showroom. She took pictures to make the damage appear more substantial and contacted her insurance company with the embellished details.

4.3 Based on Melissas actions above, you are required to determine as to whether Melissa acted in accordance with the principle underpinning ethical behaviour in insurance agreements.

4.4 You are appointed to assess the facts of Melissas matter, and propose a recommendation to the insurance company. Based on the facts presented above fully discuss whether the insurance company ought to honour the agreement to indemnify Melissa against the damage.