The insurer's pre-contractual duty of good faith

This chapter considers the insurer&s;s pre-contractual duty of good faith – to explain to the insured the contents of the insurance contract, to make clear explanation of the clauses which exclude or limit the insurer&s;s liabilities, and not to mislead the insured by misrepresentation or concealment of material information as to the insurance products. It is the unique feature of the Insurance Law that at the time of concluding the contract, an insurer is required to clearly explain the concept, the content, and legal effect of the exemption clauses; otherwise, these clauses are ineffective. This chapter also discusses the remedies for the breach of the insurer&s;s duty of good faith and puts forward some suggestions on the reform of the Insurance Law regarding remedies for the breach of the insurer&s;s duty of good faith. In addition, a comparative analysis of the law in some other jurisdictions (the UK, Australia, New Zealand, the US, and Germany) is also carried out and some suggestions on the reform of English law on the insurer&s;s pre-contractual duty of good faith are proposed.