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Insurance contracts are contracts of utmost good faith (uberrimae fidei) in most of the common law world (I have no idea about the law in China). Failure to di
by NovemberWhiskey 6y ago
Insurance contracts are contracts of utmost good faith (uberrimae fidei) in most of the common law world (I have no idea about the law in China).
Failure to disclose material facts renders the contract voidable. Insurance is not supposed to be a method for exploiting information arbitrage, and the law is formed explicitly on that basis.
- AllegedAlec 6y agoIf that were to be the case, why does my insurer try to wiggle out of paying me based on shit like bogus claims of 'preexisting conditions'? That doesn't sound like something dome in good faith.
- NovemberWhiskey 6y agoGood faith means that if you have a pre-existing condition then you disclose it, and it means that if your insurance company doesn't insure pre-existing conditions then they disclose that. This is all before signing the contract. It doesn't mean there can't be robust discussions about what the contract covers when particularly unexpected sets of facts come up.
- AllegedAlec 6y agoWhen I break a tooth, that's not due to a preexisting condition though, and them arguing that it is is bad faith.