Doctrine Of Utmost Good Faith
A fundamental requirement of the parties to a transaction or contractual agreement. The doctrine of utmost good faith is a minimum standard that requires both the buyer and seller in a transaction to act honestly toward each other and to not mislead or refrain from providing critical information to the other party. Investopedia Says:
The doctrine of utmost good faith applies to many common financial transactions. In the insurance market, the doctrine of utmost good faith requires the party seeking insurance to disclose all relevant personal information. For example, if you are applying for life insurance, you are required to disclose any previous health problems you may have had. Likewise, the insurance agent selling you the coverage must disclose the critical information you need to know about your contract and its terms. Related Terms:
Caveat Emptor
Insurance
Life Insurance
Misselling
Seller |