Published Paper Details:

Introduction: The term �bad faith� is commonly understood as a breach of the implied duty of good faith and fair dealing recognized in insurance contracts due to the �special relationship� between an insured and an insurer. Breach of this common law duty, although based in contract, is recognized as a tort under Texas law. Unfortunately, the implied duty of good faith and fair dealing is not reciprocal. However, there is another �good faith� doctrine to be aware of. The doctrine of Uberrimae fidei, or �utmost good faith.� As set forth below, this heightened duty � which goes beyond the duty of disclosure � may be necessary given the difficulty in proving the insured had an �intent to deceive� when providing false statements on an insurance application. Uberrimae fidei�s harsh penalty of voiding the policy should also deter insured�s from withholding information from an insurance carrier or carelessly completing an insurance application. Objectives: The objectives of the paper are to describe the utmost good faith before and under marine insurance act and to describe the Does Texas Recognize the Duty of Utmost Good Faith. Methodology: To fulfill this objectives researcher adopted is a doctrinal form and the author has referred secondary sources in doing the research analysis. Conclusion: It is clear, therefore, that whilst utmost good faith is making some contribution to fairness, the duty is not reaching its full or intended potential. It has served as a launching pad for industry-driven enunciations of best practice which are moving towards procedural fairness. However, utmost good faith has done little to improve substantive unfairness in policy terms. To a large extent, insurers are constricted in the exercise of their discretion regarding reinsurance, underwriting and out of date policy definitions in legacy products, and reform is needed to enable insurers to act in a way that delivers fair outcomes.