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CHAPTER 3 UTMOST GOOD FAITH

A Guide to Reinsurance Law

3 UTMOST GOOD FAITH THE ELEMENTS OF THE DUTY OF UTMOST GOOD FAITH Nature of the duty The duty of utmost good faith is a doctrine which is in English law unique to insurance and reinsurance contracts. The usual obligation of a contracting party to avoid misrepresentation is supplemented by the additional obligation on a party to an insurance or reinsurance agreement to disclose all material facts to the other party prior to the making of the contract.

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