The pre-contract utmost good faith in the insurance law - A comparative study of the Chinese law and the common law

Abstract

The principle of utmost good faith is quite often the issue in dispute between the insurance parties. Some phrases used in the Chinese law are not unequivocal and this has contributed to the frequency of disputes. As there are many definitions in the common law that are comparative to their equivalents in the Chinese law, a comparative study between the Chinese law and the common law will help to clarify the ambiguities in the Chinese law.In common law countries, the principle of utmost good faith is also under some criticism, and for some decades, the suggestions for reforming have been coming from the academics, the courts and the committees of parliaments. The Chinese insurance laws also have the same problems. The criticism to the common law and suggestions of reform in common law countries might be also helpful to the resolution of the problems in the Chinese insurance laws.