Concept:Uberrimae fidei means “utmost good faith,” and it is the insurance principle that requires full disclosure of all material facts by both parties.
Explanation:In insurance contracts, the principle of uberrimae fidei demands complete honesty from both the insurer and the proposer.
It requires the insurance company to disclose all material facts about the risk to the proposer, just as the proposer must disclose facts about the insured item or life.
This mutual duty ensures that the contract is fair and based on full information.
The other options — subrogation, contribution, and proximate cause — deal with claims and loss-sharing, not disclosure of material facts.
Answer:A. uberrimae fidei.