Uberrima Fides

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Uberrima Fides

A legal principle in which all parties to a contract must make full disclosure of material facts in order for the contract to be effective. It is used in insurance contracts, in which the potential policyholder must declare all illnesses, injuries or other facts that would change the policy's level of risk. The phrase "uberrima fides" is Latin for "utmost good faith." It is also the motto of Lloyd's.
References in periodicals archive ?
Under federal law, a marine insurance contract is subject to the federal maritime doctrine of uberrimae fidei, or utmost good faith.
treating utmost good faith as an entrenched Admiralty rule.
Because insurance is a business of utmost good faith, insurers and their agents and brokers often enter into oral agreements with regard to the collection of premiums and how the broker is entitled to commissions.
6) Accordingly, and because of this relationship, the insurer owes a duty to the insured to "exercise the utmost good faith and reasonable discretion in evaluating the claim" and negotiating for a settlement within the policy limits.
From good faith to utmost good faith in marine insurance.
43) The culpable directors owed Joy a duty of utmost good faith as a shareholder and as a co-adventurer in their small family business.
Under this fiduciary duty, an investment adviser was held to have "an affirmative duty of utmost good faith and full and fair disclosure of all material facts.
The duty of good faith as it applied to marine insurance, was first codified by statute in Section 17 of the Marine Insurance Act 1906 ("MIA"), which states that "[a] contract of marine insurance is based upon the utmost good faith, and, if the utmost good faith be not observed by either party, the contract may be avoided by the other party.
China, he said, would use ''the utmost good faith and the utmost ability'' to solve the Taiwan issue without use of force.
So insurance adopted the doctrine of utmost good faith and allowed for contracts to fail if the faith was broken, for example, through misrepresentation.
In a fiduciary relationship, the stronger party, in whom trust has been reposed, must act with utmost good faith and loyalty, and always in a manner consistent with the best interests of the weaker party.
I have filed this lawsuit as a last resort based upon our extreme frustration and disappointment in the Town after years of working with them in the utmost good faith," stated Schulweis.