Question

The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as

Answer 1

Answer:

utmost good faith

Explanation:

The utmost good faith refers to the principle in which both the parties are acted honestly i.e it disclosed all the information related to the insurance and does not misguide anything to gain a benefit in term of profit

Therefore in the given case, there is a contract made between the two parties where they trust each other and hope that they treated each one in a honest manner

So this situation represent the utmost good faith