What is the duty of all parties to a contract of insurance regarding the disclosure of material facts?

The duty of disclosure is a fundamental principle in insurance contracts, which requires all parties, particularly the insured, to provide complete and accurate information about any material facts that could affect the insurer's assessment of risk. Material facts are those that would influence an insurer's decision to accept the risk or the terms of the policy.

This duty is crucial because if the insured fails to disclose such material information, it can lead to the insurer being misled about the risks involved. In the event of a claim, if it is discovered that material facts were not disclosed, the insurer may have grounds to deny the claim or even void the contract altogether. By maintaining transparency and honesty in the disclosure process, both the insurer and the insured can better assess the risks and ensure that the terms of the contract are fair and appropriate.

The other options like contribution, indemnity, and insurable interest relate to other aspects of insurance contracts and do not specifically address the obligation to disclose material facts, which is central to establishing trust and clarity in the contractual relationship.