Question

How does the duty of Utmost Good Faith differ in insurance contracts compared to commercial contracts?

a.

The insured has no duty to disclose any facts.

b.

The insurer has a higher duty to investigate.

c.

The proposer must make no misrepresentations.

d.

There is no difference; the duties are the same.

Answer: (c).The proposer must make no misrepresentations. Explanation:In insurance contracts, the proposer has a higher duty to disclose all material facts accurately.

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Q. How does the duty of Utmost Good Faith differ in insurance contracts compared to commercial contracts?

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Explore Relevant Multiple Choice Questions (MCQs)

Q. What happens if either party involved in an insurance contract does not observe Utmost Good Faith?

Q. What is a "material fact" in the context of an insurance contract?

Q. Who has the legal duty of Utmost Good Faith in insurance contracts?

Q. Which of the following scenarios involves a material fact that should be disclosed in a life insurance proposal?

Q. In a fire insurance proposal, which of the following is considered a material fact?

Q. What type of material information should be disclosed in a marine insurance proposal?

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Q. In the context of health insurance, which of the following is considered a material fact?

Q. Why are questions in the proposal form for insurance considered material facts?

Q. In which of the following scenarios do material facts need not be disclosed?

Q. Which of the following is a situation in which the insured has no obligation to disclose material facts unless specifically asked by the underwriters?

Q. In the case of insurance contracts, when does the duty to disclose material facts extend?

Q. When is there no further need to disclose any material facts in a life insurance policy?

Q. In the case of health insurance, when does the insured need to inform the insurer about health issues?

Q. What is the term for the situation where the insured is silent about material facts because the insurer has not raised specific inquiries?

Q. When is non-disclosure considered concealment?

Q. What is the principle based on which insurance contracts operate, demanding the full disclosure of all material facts by the insured?

Q. Which of the following is NOT considered a material fact that the insured should disclose in a life insurance proposal?

Q. In the case of general insurance, what must the insured do at the time of policy renewal if there has been a change in the occupancy of a building?

Q. When non-disclosure is unintentional and occurs without the intention to deceive, it is referred to as:

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