Page 79 - W01TB8_2017-18_[low-res]_F2F_Neat

5

Good faith

Contents Syllabus learning
outcomes
Learning objectives

Introduction
Key terms
A Principle of utmost good faith 3.8
B Duty of disclosure 3.8, 3.9, 3.10
C Material facts 3.10 Chapter
D Consequences of non-disclosure and misrepresentation 3.8, 3.11 5
E Compulsory insurances 3.9

Key points
Answers
Self-test questions Reference copy for CII Face to Face Training

Learning objectives
After studying this chapter, you should be able to:
• explain the difference between utmost good faith and good faith and how they apply to contracts of
insurance;
• describe the duty of disclosure in insurance and state how it may be modified by policy wordings;
• describe the ways in which insurers may limit their entitlement to disclosure of information;
• define a material fact and a material circumstance and their importance;
• describe when the duty of disclosure is replaced with a duty to take care not to make a
misrepresentation;
• describe the duty to make a fair presentation of a risk and how it arises; and
• describe the consequences of non-disclosure, misrepresentation or a breach of the duty of fair
presentation.