Smith owned a concrete block building valued at $200,000.Because it was virtually fireproof,he insured it for only $100,000 under a policy of insurance,which contained an 80 percent co-insurance clause.Some time later,the building was damaged by fire.
-A fire insurance policy is a contract of utmost good faith.

Question

Quizplus · Accepted Answer

This statement is true. A fire insurance policy requires both the insurer and insured to act with utmost good faith, meaning they must disclose all relevant information and act honestly in all dealings related to the policy.

Smith Owned a Concrete Block Building Valued at $200,000