ABSTRACT
Reference should be made to specialist works such as Clarke, The Law of Insurance Contracts. At common law, all contracts of reinsurance, whether facultative or treaty, constitute contracts of utmost good faith and therefore full disclosure is required prior to the making of the contract. Under the common law, contracts of insurance are one of the few forms of contracts subject to the principle of uberrimae fidei, or utmost good faith, which requires each party to make full disclosure of all material facts that may influence the other party in deciding whether to enter into a contract, or the terms upon which to do so. Legislation in the United Kingdom has progressively sought to mitigate the rigours of the common law relating to the duty of good faith. In respect of a consumer insurance contract the common law duty of disclosure is replaced by duty upon the consumer to take reasonable care not to make a misrepresentation to the insurer.
