What Are the "Principle of Utmost Good Faith" and the "Duty of Honest Disclosure"?

Because of information asymmetry and the impossibility of prior investigation, the insurance industry and online mutual aid rely on the principle of utmost good faith and the duty of honest disclosure, and they rely on them to a far greater degree than other industries.

The principle of utmost good faith means good faith on both sides. If either side is not in good faith, the agreement and contract reached are void.

The duty of honest disclosure is a concretization of the principle of utmost good faith: the policyholder (participant in mutual aid) must truthfully report their situation without concealment. Matters commonly required to be disclosed include: 1. having various illnesses without disclosing them; 2. having hospital admission records without disclosing them; 3. smoking without disclosing it; 4. rapid weight gain or loss without disclosing it; 5. chronic or congenital diseases without disclosing them; 6. engaging in risky sports without disclosing it; 7. working in a dangerous occupation without disclosing it; and so on.

As for its effect: if you fail to disclose honestly, the agreement between the parties is void, and the user cannot obtain a claim or assistance.

Original post: http://club.kags.com/thread-154152-1-1.html