Question

Which principle emphasizes the disclosure of every material fact in the reinsurance contract?

a.

Principle of utmost good faith

b.

Principle of indemnity

c.

Principle of insurable interest

d.

Principle of public needs

Answer: (a).Principle of utmost good faith Explanation:The principle of utmost good faith applies to both reinsurance and direct insurance. It requires the reinsured to disclose all relevant information about the risk to the reinsurer. This promotes transparency and ensures a fair reinsurance transaction.

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Q. Which principle emphasizes the disclosure of every material fact in the reinsurance contract?

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