Utmost Good Faith (Uberrimae Fidei)

Utmost Good Faith (Uberrimae Fidei) is a legal principle in insurance that requires both parties—insured and insurer—to act honestly and disclose all relevant information honestly and completely from the start. For the insured, this means revealing all material facts that could affect the insurer’s decision. For the insurer, it involves providing clear and accurate information about the policy. This mutual honesty ensures fairness and helps prevent fraud, making the insurance transaction trustworthy and effective. Essentially, both sides must share all important information openly to create a fair agreement.