The principle of utmost good faith allows the insured
A. to accept all risks proposed for insurance B. the right to sue the insurer C. to make claim from more than one insurer D. to make a full disclosure of the proposed risk
Correct Answer: D
Explanation
Utmost Good Faith. Utmost good faith is a common law principle (sometimes called Uberrimae Fidei). The principle means that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith towards the company offering the insurance. It means that both the policyholder and the insurer need to disclose all material and relevant information to each other before commencement of the contract.
