CAF-4 · Chapter 4 · Question 12 of 15
In a contract of insurance (Uberrimae Fidei), what is the duty of the parties regarding the disclosure of facts?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) They have a duty to speak and disclose all material facts.
Explanation
In contracts of 'utmost good faith' (like insurance), the law imposes a positive duty on the parties to disclose all material facts, and silence in such cases can constitute fraud.
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