What is Utmost good faith ? What is principle of contribution ?

Question

Accepted Answer

Utmost good faith is a principle in insurance contracts that requires both parties to act honestly and disclose all relevant information. Principle of contribution states that if a person is insured by multiple policies, each insurer will pay a proportionate amount of the claim.

Utmost good faith requires both parties to act honestly and disclose all relevant information
It applies to all types of insurance contracts
If one party fails to act in good faith, the other party may have the right to void the contract
Principle of contribution applies when a person is insured by multiple policies
Each insurer will pay a proportionate amount of the claim
For example, if a person has two health insurance policies and incurs a medical expense of $10,000, each insurer will pay $5,000

What is Utmost good faith ? What is principle of contribution ?

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