To maintain the principle of utmost good faith, what must the insured do?

The principle of utmost good faith, or "uberrima fides," is a foundational concept in insurance contracts that requires both parties—the insurer and the insured—to act honestly and not withhold relevant information from each other. For the insured, this means they have a duty to disclose all relevant facts to the insurer when applying for insurance coverage. This disclosure allows the insurer to properly assess the risk and determine appropriate premiums and coverage terms.

By providing all material information, such as past claims history, health conditions, or any other facts that could influence the insurer's decision-making, the insured helps to foster a transparent relationship. Failure to disclose relevant information can lead to claims being denied or the policy being voided, as the insurer relies on the accuracy of the information provided to gauge insurability.

The other choices do not align with the principle of utmost good faith. Negotiating terms extensively does not necessarily involve honesty about pertinent facts. Limiting coverage options might be a strategic decision but does not engage the obligation of full disclosure. Seeking disputes through litigation is often a last resort and contrary to the cooperative spirit of mutual trust and good faith fundamental to insurance relationships.