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It is the foremost guiding principal of insurance. That both parties to the contract, that is, the insured and the insurance company, act in the "utmost good faith" in their dealings with each other, and that the insured disclose all matters which may affect the insureability of his risk. Most often used in Ocean Marine insurance, where a policy may be issued while a ship is at sea, and neither the owner nor the insurer knew if the ship is still afloat.

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Utmost good faith. Used in insurance, especially marine insurance.

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