Insurance Awareness - Life Insurance - LIC
In the context of life insurance claim settlement, what does the principle of 'Utmost Good Faith' imply for the claimant?
In the context of life insurance claim settlement, what does the principle of 'Utmost Good Faith' imply for the claimant?
hard Q10 of 15
Step-by-Step Solution
Step 1: Understand 'Utmost Good Faith'
This principle requires both insurer and insured to disclose all material facts honestly.Step 2: Apply to claimant's role
Claimant must provide truthful information and documents to facilitate claim settlement.Step 3: Eliminate incorrect options
Withholding information, avoiding documents, or arbitrary negotiation violate this principle.Final Answer:
Claimant must disclose all material facts honestly to the insurer → Option DQuick Check:
Utmost Good Faith is fundamental to insurance contracts and claims.
Quick Trick: Honesty is key under Utmost Good Faith.
Common Mistakes:
MISTAKES- Thinking claimant can hide facts or avoid documentation.
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