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Today General Knowledge(GK)
Which of the following principles of Insurance denotes a positive duty of the person seeking insurance to voluntarily disclose all facts material to the risk being proposed whether requested or not?
A)
Insurable Interest
B)
Utmost Good Faith
C)
Principle of Contribution
D)
Principle of loss Minimization

Correct Answer : Option (B) - Utmost Good Faith



Utmost Good Faith is one of the principles that insurance is based on. It denotes a positive duty of the person seeking insurance to voluntarily disclose accurately and fully, all facts material to the risk being proposed whether requested or not.
The principle of Utmost Good Faith is also known as Uberrimae Fides.

Published On : June 2, 2021
Category : Insurance and Finance
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