Utmost good faith (uberrima fides)

Good faith occupies in insurance a more demanding place than in the general law of contract. The common law tradition even calls it utmost good faith, or uberrima fides, to underline that both parties owe each other a heightened transparency and loyalty. This requirement is justified by the singular nature of the insurance contract, founded on chance and marked by an information asymmetry, the insured knowing their risk better than the insurer, and the insurer mastering the drafting and scope of cover better than the insured. On the insured's side, this principle takes concrete form in the duty to disclose loyally and accurately the circumstances of the risk, breach of which is heavily sanctioned. On the insurer's side, it translates into a duty of clarity and loyalty in drafting the contract, informing the insured and handling claims, ambiguous clauses generally being interpreted against the party that drafted them. In French civil law, this foundation connects to the general requirement of contractual good faith, reinforced by the rules specific to the insurance code. In cyber, where the underwriting questionnaire is central, the insured's good faith about the real state of its security has become a major litigation issue.

An insurer drafts an ambiguous exclusion clause and tries to invoke it against an insured acting in good faith. In line with the principle, the court interprets the doubt in favor of the insured, against the insurer that drafted the clause.

bonne foi, uberrima fides, utmost good faith, plus haute bonne foi