Explain Why an Insurance Contract Needs the Utmost Good Faith

question 23

Essay

Explain why an insurance contract needs the utmost good faith.

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Definitions:

Taxpayers

Individuals or entities that are obligated to pay taxes to government authorities based on earned income, property ownership, or other taxable activities.

Percentage

A proportion or share in relation to a whole, represented as a fraction of 100.

United States

A country located in North America, comprising 50 states, a federal district, and several territories, known for its significant economic and cultural influence globally.

Tax-transfer System

The governmental mechanism by which taxes are collected from individuals and businesses, and redistributed through spending programs, often targeting social welfare and public services.