Study On Right To Know Of Insurance Contract

The first principle of insurance contract is utmost good faith; both parties must obey this principle, and should fulfill their obligations. From the point of rights view, both of the parties have a right to know of insurance contract, and this system is a special one in insurance law. Without rational system of right to know of insurance contract, without the orderly development of insurance.Though both parties of insurance contract are equal in form, since its interest exchange is particular, the unequal latent really exists; Meanwhile, for various kinds of interests conflicts among the balanced parties, both parties have to fulfill the honest and trustworthy obligation in order to reflect their true meaning, thus the right to know of insurance contract has a necessity of existence. This also reflects the value of insurance contract.The theory of information asymmetry indicate that because of the party's information asymmetry in the trade, the market chooses against normality. And it is the basic economic origin of the right to know of insurance contract; According to the theory of "transaction cost and trade benefit ",in order to economize message cost , both parties should reveal information to the other side truly, and there is no need for the applicant to cost a lot of money collecting messages. This is another economic origin of setting up the system of right to know of insurance contract.Because of the difference in such factors as the political background and legal culture, the regulation to the right to know of insurance contract is not the same in foreign countries: In the insurer's right to know, the applicant has a duty to disclose, inform when danger increases, notice when the insurance accidents happen, we can learn something from them; In the applicant's right to know, it is less likely to involve abroad.The legislative idea that our country should set up about the right to know of insurance contract is: Carry on relevant systems and arrange from the insured and the assured, and attempt to set up a perfect frame of right to know of insurance contract.