Literally, of the utmost good faith. A defining characterization or quality of some (contractual) relationships of which reinsurance is universally recognized to be. Among other difference from ordinary relationships, the nature of reinsurance transactions is dependent upon a mutual trust and a lively regard for the interests of the other party, even if inimical to one’s own. A breach of utmost good faith, especially in regard to full and voluntary disclosure of the elements of risk of loss, is accepted as grounds for any necessary reformation or redress, including rescission.
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Literally, of the utmost good faith. The basis of all insurance contracts – both parties to the contract are bound to exercise good faith and do so by a full disclosure of all information material to the proposed contract.
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Latin phrase meaning of the fullest confidence’. See UTMOST GOOD FAITH.
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“Utmost good faith.” A provision sometimes found in insurance agreements and considered descriptive of the insurance relationship.