Concept:Utmost good faith means both parties to an insurance contract must act honestly and reveal all material facts.
Explanation:Insurance contracts are based on trust between the insured and the insurer.
This principle, also known as
uberrimae fidei, places a legal duty on both sides.
The insured must disclose all risks and relevant information about the subject matter.
The insurer must disclose all policy terms, conditions, and any factors that may affect the contract.
If either party hides important information, the contract may become void.
Hence, the duty applies equally to both the insured and the insurer.
Answer:A. both the insured and insurer must disclose all information