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Insurance Jargon

Utmost good faith


Definition:

A positive duty to voluntarily disclose, accurately and fully, all facts material to the risk being proposed, whether requested or not.

FOR DUMMIES

An example of a breach of Utmost Good Faith is - A quote is obtained and you don't disclose a drink driving conviction. Even if the conviction in question is not specifically asked. Common knowledge will tell you, this will impact on your premium and Insurers covering the risk.


Date added: 2011-03-06 17:34:44   
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