Fiduciary Duties
The fact that a contract is one of utmost good faith does not however mean that it gives rise to a general fiduciary relationship. The relationship between insured and insurer is not akin to the relationship between, say, guardian and ward, principal and agent, or trustee and beneficiary. In these latter instances, the inherent character of the relationship is such that the law has traditionally imported general fiduciary obligations. The insurer-insured relationship is contractual; the parties are parties to an arms-length agreement. The principle of uberrima fides does not affect the arms-length nature of the agreement, and cannot be used to find a general fiduciary relationship. The insurance contract, as noted above, imposes certain specific obligations on its parties. These obligations, however, do not import general fiduciary duties into each and every insurance relationship. Before such fiduciary obligations can be imported there must be specific circumstances in the relationship that call for their imposition.
Read more about this topic: Uberrima Fides
Famous quotes containing the word duties:
“It is fair to assume that when women in the past have achieved even a second or third place in the ranks of genius they have shown far more native ability than men have needed to reach the same eminence. Not excused from the more general duties that constitute the cement of society, most women of talent have had but one hand free with which to work out their ideal conceptions.”
—Anna Garlin Spencer (1851–1931)