Mistake - Error in ones knowledge or belief or interpretation of a thing or event. This can lead to an error in understanding and agreement about the subject matter of contract
Uberrima Fides or Utmost Good Faith - Insurer & Insured must disclose all material facts relating to the subject matter of insurance. A positive duty to voluntarily disclose, accurately and fully, all facts material to the risk being proposed, whether requested or not
If utmost good faith is not observed by either party, the contract may be avoided by the other
Material facts - It has been defined as a fact that would affect the judgment of an insurance underwriter in deciding whether to accept the risk and if so, the rate of premium and the terms and conditions
Past history of illness,Existence of past policies taken from all insurers and their present status,All questions in the proposal form or application for insurance are considered to be material
MODELEXAM® 
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