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utmost good faith

   Also found in: Legal, Financial, Wikipedia 0.01 sec.
utmost good faith
n
(Business / Insurance) a principle used in insurance contracts, legally obliging all parties to reveal to the others any information that might influence the others' decision to enter into the contract Also called uberrima fides


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They are required to act in utmost good faith, and in accepting the office they impliedly undertake to give to the enterprise the benefit of their best care and judgment, and to exercise the powers conferred solely in the interests of the corporation.
The relationship between an insurance agent or broker and the person acquiring insurance requires the agent to treat the insured with the utmost good faith.
Many creditors, in recent times, work on the principle of utmost good faith, which means the borrower has to prove fair past dealings before the new transaction begins.
 
 
 
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