WAEC - Commerce (2015 - No. 20)
The term utmost good faith in insurance means?
both the insured and insurer must disclose all information
only the insurer must disclose all information
the beneficiary must disclose all information
only the insured must disclose all information
Explication
Utmost good faith is a common law principle (sometimes called Uberrimae Fidei). The principle means that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith towards the company offering theinsurance. It requires transacting parties to act honestly and not mislead or withhold critical information from one another.