The Subject-Matter of Uberrimae Fidei Doctrine Applicable to Insurance Contracts
##plugins.themes.bootstrap3.article.main##
Abstract
This article deals with the main issues related to discloser of essential information in insurance contracts. Uberrimae fidei (of utmost good faith) doctrine applies substantially to all kinds and branches of insurance contracts, including reinsurance contracts as well. This doctrine requires a higher standard of good faith between parties of insurance contract.
Insurance contracts are different from other kinds of contracts as the parties are not on equal footing and could involve other party into the contract in ignorance of material facts.
The parties are bound to disclose information which is material before the contract is concluded. The duty of discloser requires that statements made by policyholder would be of facts and not opinion. The insurer could not rest on opinion of insured, as misstated fact, in case if opinion is different from real situation (legal facts). The insured must disclose only facts that he knows as well as those actually known by him. The material fact is any fact that will influence the decision of prudent insurer to conclude an insurance contract and assessment of transferable risk of insured or policyholder.
According to the Civil Code of the Republic of Lithuania only a policyholder must disclose information to the insurer.
The Law on Insurance establishes that the insurer has possibility to determine obligations as well for the insured, beneficiary or third party. Thus, the duty to disclose information applies not only to the policyholder, but also to the insured, beneficiary or third party as well. The duty to disclose applies to information which is fixed in regulations of standard cover prepared by the insurer or in additional requests submitted by the insurer to the policyholder. According to the Civil Code of the Republic of Lithuania (Art. 1.91) insurer could stand on undisclosed information for which insurer does not asked policyholder, but which prudent and honest policyholder would disclose in any case.
The duty of discloser is borne by both parties of the insurance contract. The insurer’s duty to disclose facts are related to explanation of conditions of standard cover to policyholder, disclose the title, the place of residence and other information to policyholder. This duty is fixed in the Civil Code of the Republic of Lithuania and the Law on Insurance of the Republic of Lithuania.
Insurance contracts are different from other kinds of contracts as the parties are not on equal footing and could involve other party into the contract in ignorance of material facts.
The parties are bound to disclose information which is material before the contract is concluded. The duty of discloser requires that statements made by policyholder would be of facts and not opinion. The insurer could not rest on opinion of insured, as misstated fact, in case if opinion is different from real situation (legal facts). The insured must disclose only facts that he knows as well as those actually known by him. The material fact is any fact that will influence the decision of prudent insurer to conclude an insurance contract and assessment of transferable risk of insured or policyholder.
According to the Civil Code of the Republic of Lithuania only a policyholder must disclose information to the insurer.
The Law on Insurance establishes that the insurer has possibility to determine obligations as well for the insured, beneficiary or third party. Thus, the duty to disclose information applies not only to the policyholder, but also to the insured, beneficiary or third party as well. The duty to disclose applies to information which is fixed in regulations of standard cover prepared by the insurer or in additional requests submitted by the insurer to the policyholder. According to the Civil Code of the Republic of Lithuania (Art. 1.91) insurer could stand on undisclosed information for which insurer does not asked policyholder, but which prudent and honest policyholder would disclose in any case.
The duty of discloser is borne by both parties of the insurance contract. The insurer’s duty to disclose facts are related to explanation of conditions of standard cover to policyholder, disclose the title, the place of residence and other information to policyholder. This duty is fixed in the Civil Code of the Republic of Lithuania and the Law on Insurance of the Republic of Lithuania.
##plugins.themes.bootstrap3.article.details##
Section
Articles
Authors contributing to Jurisprudence agree to publish their articles under a Creative Commons Attribution-NoDerivatives 4.0 International Public (CC BY-NC-ND) License, allowing third parties to share their work (copy, distribute, transmit) and to adapt it, under the condition that the authors are given credit, and that in the event of reuse or distribution, the terms of this licence are made clear.
Authors retain copyright of their work, with first publication rights granted to the Association for Learning Technology.
Please see Copyright and Licence Agreement for further details.
Authors retain copyright of their work, with first publication rights granted to the Association for Learning Technology.
Please see Copyright and Licence Agreement for further details.
