On Obligations Of Notification And Explanation In Law Of Insurance

As a special commercial contract, the principle of good faith in Law of Insurancestands above other civil laws insurance contract due to the particularity of the natureof the contract, which is called the principle of utmost good faith and utmost goodwill. Throughout insurance activities, the status of the principle of good faith ininsurance law activities is determined by this principle. However, the real connotationof the principle of utmost good faith is not fully understood and the research on therealization system of law of the principle of utmost good faith is not comprehensiveenough due to lack of in-depth researches on the principle of utmost good faith ininsurance. As a result, the analytic demonstration of the principle of utmost good faithin insurance, its truly disclosure obligation and specifying obligation for applicantand insurer is emphasized in this thesis under such a theory and realistic background.The research objectives of this thesis are: understanding the essence, connotationand function of the principle of utmost good faith through further theoreticalunderstanding; identifying the embodiment of the truly disclosure obligation ofapplicant and the specifying obligation of insurer in the core value of insurance law asthe principle of utmost good faith; offering proposals for the perfection andrealization of the principle of utmost good faith by trial cases.The research methods in this thesis include: firstly, analyzing and discussing thebasic contents of the principle of utmost good faith and the truly disclosure obligationof applicant and specifying obligation of insurer under the guidance of this principle;then doing researches on the differences of insurance law at home and abroad throughthe method of comparison; giving opinions and offering proposals about everyquestion in insurance law.The following conclusions have been drawn in this thesis through researches:Ⅰ. The party of insurance contract is required to adhere to the principle of goodfaith either in the conclusion of contract or the performance of contract, which isstricter than that of the general civil and commercial activities, and the principle ofgood faith is throughout the whole insurance contract. Ⅱ. The premise of signing a contract as applicant and insurer should be truthfullyinformed, and the content of informing obligation should be put in the contract ascontract term. If the fact that the applicant does not truly inform is enough for theinsurer to decide whether to accept insurance or not, then the insurer can terminatethe contract for that fact that the insurant does not truly inform the facts.Ⅲ. The insurer should specify obligation and establish strict requirements for the“specifying” obligations on the exception clause by the insurance company, that is,the specifying of the insurance company should be able to draw attention from theapplicant so that applicant can be clear about the risk that is underwrote by insurancecompany and the one that is not underwrote by insurance company and also theobligations that should be performed and the legal consequence after breach of a dutyas an applicant.Ⅳ. The interests of the applicant and insurer are identical. The.applicantmitigates risks depending on the insurance company and the insurance companyenhances its business capacity relying on the applicants. They two should treat eachother with all sincerity to promote the sustainable development of insurance industryto benefit the society.Ⅴ. Along with the rapid development of insurance industry in our country,problems existing in insurance market such as misleading marketing and slowproperty claim should be taken seriously. Besides, sincere service should be adheredto so as to improve the industry quality.Above all, principle of good faith is necessary for the regulation and standard ofthe whole insurance law domain. The insurance party should exercise right and carryout obligations honestly and credibly in the insurance contract. During the process ofentering into the insurance contract and performing the insurance contract, theapplicant should offer all the important facts that can affect the formation and rate ofinsurance contract and also carry out obligation of contract honestly. Meanwhile, theinsurer is required to specify the content and exception clause of the insurancecontract to make sure that the applicant can make independent choice. As the basicprinciple of insurance law, principle of utmost good faith is the foundation ofinsurance activities and it also plays important role in the legislation guidance, regulating insurance behavior, balancing interest conflicts between the insuranceparties in insurance industry. The informing system and specifying system determinedby the insurance law is the concrete manifestation of utmost good faith, however, itcan not cover the whole principle of utmost good faith. The establishment andimprovement of system criterion of the insurance auxiliary industry should beenhanced in China.It is hoped that more and more reflections and researches can be caused by theanalysis and demonstration in this thesis so that insurance law and related institutionscan be improved to promote the health and effective development of insurance marketand to safeguard the legitimate rights and interests of the party of insurance contract.