Utmost Agreement

Subject to certain exceptions, the duty of the common law, in good faith, requires the parties to disclose all essential facts relevant to the insurance policy. This obligation applies to information that has not been requested from the insured, provided it is an essential fact. Failure to comply with this obligation may allow the insurer to circumvent the contract. The principle of supreme good faith became for the first time in 1766 by Lord Mansfield in his famous pioneering decision Carter v. BoehmFootnote 38 – and it is the lack of information from the insurance contract (and the non-existent legal right) that has fostered the idea of a specific obligation of the applicant in terms of pre-contract information. Footnote 39 It is interesting to note that Lord Mansfield did not literally create the principle of the highest faith. On the contrary, he commented on the nature of insurance as a reason for a disclosure obligationNote 40 when he found that here are some examples of the use of extreme contracts on EDGAR: the “simple” principle of good faith would prohibit the silence of information as such. Footnote 42 the cover-up would attract the insurer “in a good deal, its ignorance of this fact and its belief on the contrary.” Therefore, before asking what is the content of the “highest” supplement, it must be said that the extreme faith stems from the same considerations as the German legislative provision of the applicant`s disclosure obligation, allegedly due to “simple” good faith. This conclusion leads to the substantive question: is the supplement motivated “extremely” by the attempt to emphasize the importance of good faith in insurance in relation to good faith in the general law of contracts?; In other words, is “highest good faith” the simple shortcut of “the greatest meaning of good faith,” without changing the very meaning of the principle? The concept of good faith was introduced into the insurance industry after the events of Carter v Boehm (1766) and is enshrined in the Insurance Contracts Act of 1984 (ICA). [13] The Act provides, in accordance with Section 13, the obligation for all contracting parties to act faithfully. These terms of use (these terms and conditions) are changed from time to time, regulating access and use of this site, on utmost.co and on one of our websites directly referring to these conditions, as well as all our content, features, products or services accessible from such sites (together the “website”). Your continued use of the Site after the publication of the revised conditions constitutes your consent to these revised conditions and is subject to the revised conditions.

It is expected that you will re-come back this page regularly to be aware of these changes. The doctrine of extreme good faith, also known by its Latin name uberrimae fidei, is a minimum standard that legally obliges all parties who enter into a contract to act honestly and not to deprive each other of critical information. The doctrine of the highest faith applies to many daily financial transactions and is one of the most fundamental doctrines of insurance law. These terms of use (these terms and conditions) are changed from time to time, regulating access and use of this site, on utmost.co and on one of our websites directly referring to these conditions, as well as all our content, features, products or services accessible from such sites (together the “website”). Please read these conditions carefully when accessing or using the site.