In insurance the term Uberrimae fidei stands for?

In insurance, the term Uberrimae fidei stands for utmost good faith. It means that the parties involved in an insurance contract must act in complete honesty and disclose all material facts that could affect the insurance coverage. The insurance company relies on the information provided by the policyholder to determine the risk and calculate the premium. Therefore, it is the duty of the policyholder to provide accurate and complete information. Failure to do so can result in the insurance policy being voided, and the insured party will not receive any compensation in case of loss or damage.