ABSTRACT

The courts classically have examined the duties of good faith within the surrounds of the bilateral relationship between an assured and an insurer. This chapter looks at the position of the insurance broker and insurance contract, such as other agents, co-insurers, assignees, and co-assureds. The duty of good faith is owed as between the original parties to the insurance contract, the assured and insurer. The effect of the duty of the utmost good faith or its breach on one of those contracts may be felt as a tremor throughout the other contracts embodied by the policy. When the duty of the utmost good faith has been breached, it is the duty of the solicitors to advise the innocent party of their rights and to pursue the allegation of a want of good faith if the party so instructs. The duty of good faith is owed by each party to the contract of insurance and by the agents of these parties.