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.