Utmost good faith ensures truthfulness in insurance contracts by requiring full disclosure from both parties.
Utmost good faith guarantees that the information explained in the insurance contract is true. This principle requires full disclosure of all relevant information by both parties involved in the contract. It ensures honesty and transparency in the insurance agreement.
For example, when an individual applies for an insurance policy, they are expected to provide accurate details about their health, lifestyle, and any other pertinent information to the insurer. In return, the insurer must truthfully represent the terms and coverage provided in the policy.
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