Glossary

Utmost good faith

Also called uberrima fides.

The duty on both sides to disclose everything material, honestly.

Insurance is a contract of utmost good faith. The applicant must disclose material facts even when not specifically asked, and the insurer must deal fairly in turn.

It is the principle underneath the disclosure rules, and the reason non-disclosure is treated more seriously in insurance than a comparable omission would be elsewhere.

Related terms

  • Material non-disclosure Failing to reveal something that would have affected the insurer's decision.
  • Basis of contract The principle that the answers you give form the foundation of the policy.
  • Proposal form The application document. Its answers form the basis of the contract.

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