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Question

What is the main purpose of the principle of utmost good faith in insurance?

A To ensure the insurer provides accurate information Correct Answer Incorrect Answer
B To ensure the insured provides accurate information Correct Answer Incorrect Answer
C To ensure both parties provide accurate information Correct Answer Incorrect Answer
D To ensure the insurer makes a profit Correct Answer Incorrect Answer

Solution

The principle of utmost good faith requires both the insurer and the insured to act in good faith and provide accurate and complete information during the insurance contract negotiation process.

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