A Guide to Reinsurance Law
3
UTMOST GOOD FAITH
THE ELEMENTS OF THE DUTY OF UTMOST GOOD FAITH
Nature of the duty
The duty of utmost good faith is a doctrine which is in English law unique to insurance and reinsurance contracts. The usual obligation of a contracting party to avoid misrepresentation is supplemented by the additional obligation on a party to an insurance or reinsurance agreement to disclose all material facts to the other party prior to the making of the contract.