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The principle of utmost good faith allows the insured 

Insurance
WAEC 2017

The principle of utmost good faith allows the insured 

  • A. to accept all risks proposed for insurance
  • B. the right to sue the insurer
  • C. to make claim from more than one insurer
  • D. to make a full disclosure of the proposed risk
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Correct Answer: Option D
Explanation

Utmost Good Faith. Utmost good faith is a common law principle (sometimes called Uberrimae Fidei). The principle means that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith towards the company offering the insurance.

It means that both the policyholder and the insurer need to disclose all material and relevant information to each other before commencement of the contract.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts