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    Question

    Which jurisprudential principle best supports the

    concept of "utmost good faith" (Uberrimae fidei) in insurance contracts?
    A Legal Positivism Correct Answer Incorrect Answer
    B Natural Justice Correct Answer Incorrect Answer
    C Equity and Fairness Correct Answer Incorrect Answer
    D Social Contract Theory Correct Answer Incorrect Answer
    E Doctrine of Stare Decisis Correct Answer Incorrect Answer

    Solution

    The principle of utmost good faith (Uberrimae fidei) is fundamental in insurance contracts, requiring both parties—insurer and insured—to disclose all material facts honestly. • This principle is rooted in equity and fairness, ensuring trust and transparency in contracts where there is an inherent imbalance of information. • Unlike typical contracts, insurance contracts rely heavily on the insured’s disclosure because the insurer cannot easily verify all facts. • Failure to act in utmost good faith can lead to voidance of the policy. • Jurisprudentially, it reflects the equitable maxim that “he who seeks equity must do equity.” The principle of utmost good faith (Uberrimae fidei) is fundamental in insurance contracts, requiring both parties—insurer and insured—to disclose all material facts honestly. • This principle is rooted in equity and fairness, ensuring trust and transparency in contracts where there is an inherent imbalance of information. • Unlike typical contracts, insurance contracts rely heavily on the insured’s disclosure because the insurer cannot easily verify all facts. • Failure to act in utmost good faith can lead to voidance of the policy. • Jurisprudentially, it reflects the equitable maxim that “he who seeks equity must do equity.”

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