Introduction

7.01 The essence of the obligation of the utmost good faith as it has been examined by the courts is typified by the duty of the assured, prior to the agreement of the contract of insurance, to bare all that he knows to the insurer, to the extent that this is material.1 The duty allows the insurer to receive all the information that the assured has or ought to have so that he may evaluate the data and thereby develop his opinion on the nature and profitability of the risk put to him.