The principle of utmost good faith allows the insured?

A. to accept all risks proposed for insurance
B. the right to sue the insurer
C. to make a claim from more than one insurer
D. to make full disclosure of the proposed risk

Correct Answer: Option D

D. to make full disclosure of the proposed risk

Explanation

Utmost Good Faith. Utmost good faith is a common law principle (sometimes called Uberrimae Fidei). The principle means that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith towards the company offering the insurance.

It means that both the policyholder and the insurer need to disclose all material and relevant information to each other before the commencement of the contract.