General Insurance
What does the principle of utmost good faith require of the parties to an insurance contract?
Answer and explanation
Answer: D. Utmost good faith requires honesty and full disclosure of material facts by both parties, which is the basis for the law on representations and concealment. It does not oblige the insurer to pay claims outside the contract, force the applicant to accept terms, or shift responsibility for the contract onto the producer.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, indemnity and utmost good faith
More general insurance questions
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