The Principle Of Utmost Good Faith Of Insurance Law

The principle of utmost good faith derived from the special nature of insurance contracts, with its legal target to balance the interests and the status of both parties through the legal provisions which stipulate the obligations of notification and guarantee for the policy holder or the insured and the obligation of forfeiting or losing certain right for the insurer. The principle of good faith is far more important for insurance contracts than for other contracts, which is reflected in the special requirements for the insured and the insurer. The main requirements for the insured are to truly notify and to honestly perform while the main requirements for the insurer are to forfeit certain right and estoppels. China's insurance law has had this reflected to certain degree, but there are legislative deflections that cannot be ignored in some respects, especially with regards to guarantee, forfeiting, and estoppels. My proposals to the issue are elaborated here in this article.