n NISM Certifications
NSM General NISM
Medium

What happens if Utmost Good Faith is not observed in an insurance contract?

Practice question from IC 38 Mock Test 15 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The contract is automatically terminated

  2. B

    The party not observing Utmost Good Faith is fined

  3. The contract may be avoided by the other party

    Correct answer

  4. D

    The party observing Utmost Good Faith is rewarded

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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