A key consequence of the designation of insurance contracts as contracts of the utmost good faith is the imposition on the insured of a duty to disclose.

Question

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The principle of utmost good faith (uberrima fides) in insurance contracts requires both parties, especially the insured, to disclose all material facts that could influence the insurer's decision to cover the risk. Failure to do so can lead to the contract being voided.

A Key Consequence of the Designation of Insurance Contracts as Contracts