What is the standard of behavior expected from insurers according to utmost good faith?

The principle of utmost good faith, known as "uberrima fides," establishes that both parties in an insurance contract—namely, the insurer and the insured—engage in a relationship built on honesty and transparency. Insurers are expected to disclose all relevant information that might influence the insured's decision. This ethical obligation means that insurers must act honestly, ensuring that they do not omit critical details that could affect the coverage or conditions of a policy.

In the context of insurance transactions, this standard is crucial because it helps in building trust between the insurer and the insured. When insurers adhere to this principle, it fosters a fair relationship where clients can make informed decisions based on complete and accurate information. Meeting this standard promotes integrity within the insurance industry and protects consumers from potential exploitation or misinformation Regarding choices that suggest malicious behavior, self-interest, or misleading tactics, these would fundamentally compromise the trust inherent in the insurance relationship and violate the expected standards of conduct established by utmost good faith.