The insurance principle that requires full disclosure of information on the insured is known as?

A. indemnity
B. caveat emptor
C. subrogation
D. uberrimae Fidel

Correct Answer:

Option D – uberrimae Fidel

Explanation

Uberrima fides (sometimes seen in its genitive form uberrimae fidei) is a Latin phrase meaning “utmost good faith” (literally, “most abundant faith”). It is the name of a legal doctrine which 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.