ABSTRACT
This chapter considers the effect of statutes upon the duty of the utmost good faith in so far as they influence the individual elements required of a breach of the duty in order to sustain a cause of action. The Marine Insurance Act of 1906 was intended to codify the uncontroversial aspects of the common law duty of the utmost good faith as it applied to contracts of marine insurance. A contract of marine insurance is a contract based upon the utmost good faith, and, if the utmost good faith be not observed by either party, the contract may be avoided by the other party. The Consumer Insurance Act has fundamentally altered the consumer assureds’ duty of utmost good faith as it applies up to the making of the insurance contract. A consumer is an individual who contracts wholly or mainly for purposes unrelated to the individual's trade, business or profession.
