Insurance clients are also expected to act in “utmost good faith” meaning:

1. The decision for insurance companies and brokers to issue you a contract is based purely on the information set forth in the customer application. The insurer must be able to rely on the truthfulness of the insured’s statements regarding information about the risk and details of previous claims, cancellation, and refusals of insurance.
   
   
2. When a serious loss occurs, there is often no way to determine the amount or value of the property lost. In such instances, the onus is on the insured to exercise utmost good faith (honesty) in dealing with the insurer.

Note: This information was derived from a document produced by the Insurance Brokers Association of Canada (www.ibac.ca), and was modified to ensure its application to British Columbia.