The doctrine that both parties to an insurance contract rely on the honesty and full disclosure of the other is known as:
Explanation
Utmost good faith means each party is entitled to rely on the honesty and complete disclosure of the other; the applicant must answer truthfully, and the insurer must deal fairly. Indemnity is the concept of restoring an insured to their pre-loss condition. Subrogation is an insurer's right to recover from a responsible third party after paying a claim. The reasonable expectations doctrine concerns how ambiguous policy language is interpreted, not the duty of honesty between parties.
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Related questions on this topic
- To say an insurance contract is 'aleatory' means that:
- An insurance policy is described as a 'unilateral' contract because:
- When an insurer's duty to pay a claim depends on the insured first meeting requirements such as paying premiums and submitting proof of loss, the contract is:
- A statement an applicant makes on an insurance application that is believed true to the best of their knowledge, rather than guaranteed to be literally true, is a:
- The intentional withholding of a known material fact during the application process is called:
- A misrepresentation on an application generally allows an insurer to void the policy only when the misstatement was:
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