Which duty is primarily associated with consumer insurance contracts?

In consumer insurance contracts, the duty of utmost good faith, also known as "uberrima fides," is a fundamental principle. This duty mandates that both parties— the insurer and the insured— must act with complete honesty and transparency. The insurer must provide clear and accurate information regarding the terms of the policy, while the insured must disclose all material facts relevant to the risk being insured.

This principle is particularly significant in consumer insurance because the policyholder often has less knowledge and understanding of the insurance contract and associated risks compared to the insurer. By ensuring a relationship built on utmost good faith, it aims to promote fairness and prevent one party from taking advantage of the other by withholding critical information. In this context, it underpins the relationship between the insurer and the insured, helping to create a trust-based environment where both parties can engage confidently.

The other duties mentioned, such as the duty of disclosure, the duty to indemnify, and the duty to defend, play roles in the overall functioning of insurance contracts, but they do not emphasize the mutual trust and honesty that is central to consumer insurance as much as utmost good faith does.