The Principle of Utmost Good Faith

The Principle of Utmost Good Faith, or "uberrimae fidei," is a fundamental concept in insurance that requires both parties— the insurer and the insured— to act honestly and disclose all relevant information. The insured must share all material facts that could affect the insurer’s decision, and the insurer must do the same in their policy terms. This principle ensures trust and fairness, allowing insurers to accurately assess risk and offer appropriate coverage. Essentially, it promotes transparency and good faith dealings, fostering a fair and reliable insurance relationship.