The principle of utmost good faith allows the insured
The correct answer is D. to make a full disclosure of the proposed risk
Utmost Good Faith. Utmost good faith is a common law principle (sometimes called Uberrimae Fidei). The principle means that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith towards the company offering the insurance.
It means that both the policyholder and the insurer need to disclose all material and relevant information to each other before commencement of the contract.
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