Who is expected to act in the utmost good faith according to standard insurance practices?

In the context of insurance practices, both the applicant and the insurer are expected to act in the utmost good faith, a principle known as "uberrima fides." This principle is foundational in insurance contracts, which are agreements based on trust and honest representation.

The applicant has the responsibility to provide accurate and complete information during the application process, ensuring that all material facts are disclosed. This allows the insurer to evaluate the risk involved accurately and underwrite the policy appropriately.

On the other hand, the insurer also has an obligation to deal fairly and transparently with the applicant. This includes providing clear information about the terms, conditions, and exclusions of the insurance policy, as well as fulfilling claims in good faith when they arise.

Thus, upholding the principle of utmost good faith is a mutual obligation essential for maintaining trust and ensuring that the insurance relationship functions properly.