What must an agent do when aware of material facts not communicated to underwriters?

An agent is required to provide details of material facts when they are aware of information that has not been communicated to underwriters. This obligation stems from the principle of utmost good faith, which governs insurance contracts. The agent serves as a key intermediary between the insured and the insurer, and they have a duty to ensure that all relevant information, especially material facts that might affect the underwriting decision, is disclosed.

Material facts are those that could influence an underwriter's decision to accept or reject a risk or determine the terms of the coverage. If an agent knows about these facts but chooses not to disclose them, it can lead to significant consequences, including potential claims being denied or policies being voided due to misrepresentation.

Providing details of material facts helps maintain transparency and trust in the insurance relationship and aligns with legal and regulatory requirements in the insurance industry, which emphasize the importance of full disclosure for fair underwriting practices.