Insurance and Utmost Good Faith

The term "Utmost Good Faith" governs all legal relations between the insurer and the insured. "Utmost Good Faith" means that any party wanting to take out insurance, it must:

• Provide all information asked for by the insurer
• Disclose facts material to the risk
• Give any additional information related to the risk

"Utmost Good Faith" applies to both insurer and insured and enforces the concept of duty of disclosure.

Duty of disclosure exists to both parties of an insurance contract. It is the duty to inform the other party of everything that is relevant to the contract. Duty of disclosure and "Outmost Good Faith" are intrinsically linked.

Duty of disclosure involves material information and material facts related to the risk and i will explain it in later articles

Roy Keyrouz - Insurance Professional