Question

An insurance policy is a contract of utmost good faith. What do you think the public policy is of allowing insurance companies not to pay out on a loss when the insured has not provided proper disclosure?

Answer 1

Insurance, like most contracts between clients and businesses, is built on trust. The general principle is "best faith" is a term used to mean that any person terminating a contract with an insurer is legally obligated to be honest and accurate in the information provided. In addition, the insurance company must be honest in its work with the insurer.


Instead, the "breach of good" was established when that trust was violated. For example, if you don't tell your life insurance provider that you smoke, this is a violation of integrity.

It is possible to violate good faith without realizing it. For example, if a family member died of heart disease and you did not mention it when you asked your health care provider because you did not know this fact, it was a violation of my innocence. If you have come to know the truth and have not faithfully filled out the form, you are certainly guilty of fraud, failure to disclose, or a breach of faith.

What if the insurance company finds a coverup or truth breach? First, your insurance policy is null. Your provider is not obligated to cover you anymore. If new information is discovered at the same time as requested, you may not receive a refund for the claim. Based on the new information coming out, your insurance provider can keep you charged at a higher rate or ignore the incident.