Utmost good faith is a very important principle. The people who decide what premium is fair for a particular cover do so on the basis of written statements made in a proposal form. If this statement is untrue,then the premium agreed on will not be a fair one. Suppose I say that a crate contains copper,when in fact it contains platinum. The premium required to cover the cheaper metal will be an unfair premium for the more valuable cargo. The mis-statement is a fraud, and the policy is voidable by the party who is misled. Even if the mis-statement was unintentional, the underwriter would still be deceived and the policy voidable.