What is the definition of utmost good faith?
“Is a positive duty to voluntarily disclose, accurately and fully, all facts material to the risk being proposed whether requested or not.
To whom does the principle of utmost good faith apply to?
Both the insurer and the insured.
How can insurers alter the common law position regarding the timing of disclosure?
Upmost good faith begins at both the inception and the revival of renewal.
What is a material fact?
Marine Insurance Act 1906 “ Every circumstance is material which would influence the judgement of a prudent insurer in fixing the premium or accepting the risk.
Three examples of moral hazard?
- ) Previous refusals of insurance history
- ) Previous claims history
- ) Poor management of business’s
Which material facts do not need to be disclosed?
- Facts that ought to be known to an insurer
- Facts that would reduce the premium.
When one party breaches the duty of disclosure what is the result?
The policy can be made void. Or the insurer is entitled to refuse to pay for claims.
What is the difference between non-disclosure and misrepresentation?
Non disclosure is failing to reveal a material fact.
How must the proposer present there duty of disclosure in regards to fair presentation:
- Every material representation is a matter of fact
- Given in a matter which is clear and accessible to the prudent insurer.
- Every material representation is to a matter of expectation or belief and is made in good faith.
