The insurance principle that deals with Mr. Adeyemi’s failure to inform the insurer about his wife’s usage of the car is?

Mr. Aderemi owns a car that was insured under a comprehensive policy. while insuring the car, he did not inform the company that his wife who has no driving license also drives the car. the wife while driving the car, came face to face with rioters who damaged the car.

A. negligence
B. misrepresentation
C. untrue statement
D. utmost good faith

Correct Answer: Option D

D. utmost good faith

Explanation

“utmost good faith“. It is the name of a legal doctrine that governs insurance contracts. This means that all parties to an insurance contract must deal in good faith, making a full declaration of all material facts in the insurance proposal. The parties to the insurance can contract must act in all honestly without withholding necessary information from each other.

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Tags: Insurance

6 years ago