Doctrine of Utmost Good Faith

The Doctrine of Utmost Good Faith, often referred to by its Latin term "uberrima fides," is a principle that requires parties in certain agreements, especially insurance contracts, to act honestly and transparently. This means that individuals must disclose all relevant information that could affect the agreement. In essence, it builds trust, ensuring that neither party hides important details that could lead to misunderstandings or disputes. This doctrine is crucial in industries where risk assessment plays a significant role, as it helps maintain fairness and integrity in contractual relationships.