What does the principle of Utmost Good Faith require from the insured?

The principle of Utmost Good Faith, also known as "uberrima fides," is a fundamental concept in insurance that requires both parties—especially the insured—to act honestly and transparently during the formation of the insurance contract. This principle mandates that the insured must provide truthful and complete information when applying for coverage. It reflects the expectation that the insured will answer questions to the best of their ability, without omitting any facts that could influence the insurer's decision.

In addition to providing truthful answers, the insured is also responsible for paying the required premiums as agreed in the contract. This commitment ensures that the coverage remains valid and protects the interests of both parties involved in the insurance agreement. By adhering to these responsibilities, the insured helps maintain the integrity of the insurance system and fosters trust between themselves and the insurer.