Legal Research About The Principle Of Utmost Good Faith In Insurance Contracts

Credit is the foundation、link and soul of the modern market economy. As the basicprinciples of the civil law, the principle of good faith has already been known as "imperialclause" for all the civil activities, and urge people to pay attention to the good faith, keep theirpromise without cheat and pursue their interests without damaging others’ interests whenpeople have their civil rights and perform their civil obligations in the civil activities.Especially for the insurance, it demands a higher level of good faith because of its specificcharacteristic, namely "the utmost good faith". The so-called of utmost good faith means bothsides in the process of making and executing the insurance contract should take the utmosteffort With all sorts of effective and appropriate way to inform and explain, consciously,actively, timely, abundantly and accurately, about all the important facts, and strictly performall sorts of promise or guarantee. As one of the basic principles of insurance law, Theprinciple of utmost good faith is not only throughout the whole system of insurance law, butalso become the basic standards of insurance contract party’s behaviour.This essay insists the theory combining with reality and uses amounts of practicalcases,while relying on the relevant provisions of insurance law and regulations in ourcountry and referring to foreign insurance legislation and the relevant theory, then vividly anddeeply states the main content of the utmost good faith and definite the insurer’s obligation ofexplanation, insurance applicant’s obligation of disclosure, waiver and promissory estoppel.From the actual cases,the essay sums up the source of the lack of the utmost good faith,finally puts up to adhere to the principle of utmost good faith and regulate the insurancemarket. As result, on the one hand it can perfect the theory of the principle of utmost goodfaith, on the other hand it can provide a certain guide significance to regulate the insuranceand in insurance contract dispute.