Utmost Good Faith
/ˈʌtmoʊst ɡʊd feɪθ/
Definitions
- (n.) A legal principle requiring parties to a contract, especially insurance contracts, to disclose all material facts honestly and fully.
The principle of utmost good faith demands that insurers receive complete and truthful information to assess risk.
Related terms
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Commentary
Utmost good faith is a stricter standard than ordinary good faith and is mainly applied in insurance law to prevent concealment or misrepresentation between contracting parties.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.