Utmost Good Faith Of Insurance Contract

The phenomenon of unfair trade in insurance market in China is still outstandingand policyholders malicious insured phenomenon have occurred. So it is important tostrengthen the important role of the principle of good faith in insurance law. Thenewly modified insurance law and "Supreme People’s Court on the interpretation ofinsurance disputes to trial a number of issues"(draft) have emphasized the status ofthe principle of good faith. As one of the most fundamental principles of insurancelaw, whether the principle of good faith has given full play its rightful role in theinsurance contract and whether the subject of insurance contact has fulfilled properlyand what is the guiding significance to the insurance practice is not clarifiedsystematically in domestic. The paper analysises the basic theory of the principle ofgood faith and the necessity of the policyholders to fulfill the principle of good faithproperly and the purpose of this discourse is to deepen the understanding for theprinciple of good faith. At the same time, this discourse provides a theoretical basisfor the following contents in this paper. The writer also puts forwardrecommendations on the legislative and judicial system and the purpose is to guidethe trial practice.