Contracts of insurance and reinsurance are contracts of utmost good faith. In the event that either party fails to observe utmost good faith towards the other in regard to the negotiation of cover then the other party may avoid the contract. The duty of utmost good faith requires each party to inform the other all material facts during the negotiation of the placement, renewal or alteration of cover. An insured has a separate duty of good faith when making a claim under an insurance policy.
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A basic principle of insurance. Mutual trust in negotiating an insurance contract. The insured and the broker must disclose and truly represent every material circumstance to the underwriter before acceptance of the risk. A breach of good faith entitles the underwriter to avoid the contract.
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Firm adherence to promises made to another, including disclosure of all relevant facts, and complete trust in the fidelity of the other. Black’s Law Dictionary states: “The most abundant good faith, absolute and perfect candor, openness and honesty; the absence of any concealment or deception, however, slight.”
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An obligation of the insured to disclose material facts, i.e. facts that would influence the insurer before accepting the contract. The insurer must reciprocate but in practice the duty weighs more heavily on the insured. A breach by the insured makes the contract voidable ab inito at the insurer’s option. Breaches may be through concealment; non-disclosure; fraudulent misrepresentation; innocent misrepresentation. The duty is pre-contractual but revives at renewal and to certain midterm alterations affecting the risk. See CONTINUING DUTY OF UTMOST GOOD FAITH.
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Legally, the parties to an insurance contract are assumed to have entered the contract in the “utmost good faith,” which means they have not misrepresented any facts and intend to abide by the terms of the contract.
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A legal doctrine in which the highest standard of honesty is imposed upon the parties to an insurance contract.
Tag: RAW
V codes
Numeric designation preceded by the letter “V” that is a subclassification of ICD-9-CM coding known as The Supplementary Classification of Factors Influencing Health Status and Contact with Health Services (V01-V85) . For hospital inpatients, V codes are used to identify health care encounters that occur for reasons other than illness or injury and to identify patients whose injury or illness is influenced by special circumstances or problems such as chemotherapy, consultation, renal dialysis, or organ donor. For hospital outpatients, V codes are used to classify patient encounters for treatment of a current or resolving disease or injury. For ancillary diagnostic or therapeutic services, list the V code first followed by the code for the diagnosis that prompted the outpatient encounter.
V-Shaped Pattern
When fire burns upward and outward at an angle against a wall it leaves a pattern in the shape of a wide V. Tracing the V to its lowest point can lead to an area of origin.
V2V, V2V1, V2X for Motor
V2V is an automobile technology designed to allow automobiles to “talk” to each other and allows vehicles to communicate with the roadside infrastructure. V21 is an extension of V2V and collectively they are known as V2V1 or V2X. The V2X connected vehicles vision is extension and (a) all such vehicles have communication equipment that allows continuous connection to all nearby vehicles (b) All vehicles have communication equipment that allows continuous connection to all roadways infrastructure. (c) To improve safety, traffic flow energy usage. (d) may become an enabling technology for future cruise-assisted highways and autonomous driving.
VA
Abbreviation for Veterans Affairs. See Department of Veterans Affairs (VA) .
Vacant
Not lived in and void of furnishings.
Vacant (Property Insurance)
A building that does not have any contents or inhabitants.
Vacant property
Once defined as devoid of occupants or contents, a stricter definition is being applied as more and more communities find older buildings of three and four stories that are only one quarter occupied. Property policies impose limitations on coverage of vacant buildings so the (changing) definition of vacant property is quite important. A single dwelling may be considered vacant when there is insufficient furniture and appliances to make the property habitable.
Valid
Legally binding.
Validation
Process by which the integrity and correctness of data are established. Validation processes can occur immediately after a data item is collected or after a complete set of data is collected.