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    Question

    The principle of utmost good faith requires:

    A The insurer to assess all risks independently. Correct Answer Incorrect Answer
    B The proposer to disclose all material facts about the proposed risk. Correct Answer Incorrect Answer
    C Both parties to avoid fraud. Correct Answer Incorrect Answer
    D Premium payment in advance. Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Explanation: The principle of utmost good faith requires both parties to the insurance contract to act honestly and disclose all material information relevant to the risk being insured.

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