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Uberrimae Fidei Contract

What is 'Uberrimae Fidei Contract'

A legal agreement requiring the highest standard good faith. "Uberrimae fidei" or "uberrima fides" is Latin for "utmost good faith." Insurance contracts are the most common type of uberrimae fidei contract. Because the insurance company agrees to share the risk of loss with the policyholder, it is imperative that the policyholder act in good faith by fully disclosing all information that affects the insurance company's level of risk. Full disclosure allows the insurer to protect itself by charging the policyholder a premium that accurately reflects the level of risk it is undertaking or even refusing to issue a policy if the risk is too high.

Explaining 'Uberrimae Fidei Contract'

Because the insurance applicant often has more information about the risk that is being insured against than the insurer does, the principle of uberrimae fidei is used in an attempt to eliminate moral hazard. For example, someone applying for health insurance knows more about their eating habits, exercise patterns, family medical history and personal medical history than the potential insurer does. In order to determine how risky the applicant is, the insurer requires him or her to honestly answer a medical questionnaire and submit to a review of medical records before being approved for a policy. If the policyholder is later found to not have acted in utmost good faith at the time of application, his policy and benefits can be rescinded.


Further Reading


A Law and Economics Analysis of the Duty of Utmost Good Faith (Uberrimae Fidei) in Marine Insurance Law for Protection and Indemnity Clubs
heinonline.org [PDF]
… Page 5. (UBERRIMAE FIDEI) IN MARINE INSURANCE LAW 7 over marine insurance contracts in New England Mutual Marine Insurance Co … 21 The Court then proceeded to the trickier question of how to define a maritime contract …

E. Banks, The Palgrave Macmillan Dictionary of Finance, Investment and Banking© Erik Banks 2010E. Banks, The Palgrave Macmillan Dictionary of Finance, Investment and Banking© Erik Banks 2010
link.springer.com [PDF]
… Page 5. (UBERRIMAE FIDEI) IN MARINE INSURANCE LAW 7 over marine insurance contracts in New England Mutual Marine Insurance Co … 21 The Court then proceeded to the trickier question of how to define a maritime contract …

Uberrimae Fidei and Reinsurance Rescission: Does a Gentlemen's Agreement Have a Place in Today's Commercial MarketUberrimae Fidei and Reinsurance Rescission: Does a Gentlemen's Agreement Have a Place in Today's Commercial Market
heinonline.org [PDF]
… Page 5. (UBERRIMAE FIDEI) IN MARINE INSURANCE LAW 7 over marine insurance contracts in New England Mutual Marine Insurance Co … 21 The Court then proceeded to the trickier question of how to define a maritime contract …

On the Principle of Uberrimae Fidei in Marine Insurance Law <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-ZGHS199700012.htm' />On the Principle of Uberrimae Fidei in Marine Insurance Law [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-ZGHS199700012.htm'>PDF]
… Page 5. (UBERRIMAE FIDEI) IN MARINE INSURANCE LAW 7 over marine insurance contracts in New England Mutual Marine Insurance Co … 21 The Court then proceeded to the trickier question of how to define a maritime contract …

UNCLEAN BILL OF LADING. See BILL OFUNCLEAN BILL OF LADING. See BILL OF
link.springer.com [PDF]
… Page 5. (UBERRIMAE FIDEI) IN MARINE INSURANCE LAW 7 over marine insurance contracts in New England Mutual Marine Insurance Co … 21 The Court then proceeded to the trickier question of how to define a maritime contract …

Changing insurance contract law: an age-old, slow and unfinished storyChanging insurance contract law: an age-old, slow and unfinished story
link.springer.com [PDF]
… Page 5. (UBERRIMAE FIDEI) IN MARINE INSURANCE LAW 7 over marine insurance contracts in New England Mutual Marine Insurance Co … 21 The Court then proceeded to the trickier question of how to define a maritime contract …

Liability of the Insurance Company in International Insurance of Carriage of GoodsLiability of the Insurance Company in International Insurance of Carriage of Goods
ideas.repec.org [PDF]
… Page 5. (UBERRIMAE FIDEI) IN MARINE INSURANCE LAW 7 over marine insurance contracts in New England Mutual Marine Insurance Co … 21 The Court then proceeded to the trickier question of how to define a maritime contract …

Insider dealing: fraud in Islam?Insider dealing: fraud in Islam?
www.emerald.com [PDF]
… Page 5. (UBERRIMAE FIDEI) IN MARINE INSURANCE LAW 7 over marine insurance contracts in New England Mutual Marine Insurance Co … 21 The Court then proceeded to the trickier question of how to define a maritime contract …


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