Explain the maxim caveat emptor. Does this apply to insurance contracts?

Insurance contract is one which requires utmost good faith. The rule of caveat emptor (let the buyer beware) does not generally apply. This doctrine is supported by Representation through an application of Concealment and Warranty. An application for life and health insurance is the applicant's proposal to the insurer for protection and is the beginning of the policy contract. The proposed 'insured' is required to give accurate answers to questions in the application relating to his personal and family history, habits, employment, insurance already in force, and other applications for insurance that either pending or have been postponed or refused etc. A failure to do so leads the insurer being estopped [i.e., prevented] from denying the correctness or truth of information in the application. Insurers place great reliance on this information to issue the requested policy. This principle of insurance stems from the doctrine of "Uberrimae Fides" which is essential for a valid insurance contract. It implies that in a contract of insurance, the concerned contracting parties must rely on each other's honesty. Insurance contracts are different from other contracts. Normally the doctrine of "Caveat Emptor" governs the formation of commercial contracts which means 'let the buyer beware'. The buyer is responsible for examining the good or services and its features and functions. It is not binding upon the parties to disclose the information, which is not asked for. However in case of insurance, the products sold are intangible. Here the required facts relate to the proposer, those that are very personal and known only to him. The law imposes a greater duty on the parties to an insurance contract than those involved in commercial contracts. They need to have utmost good faith in each other, which implies full and correct disclosure of all material facts by both parties to the contract of insurance. The term "material fact" refers to every fact or information, which has a bearing on the decisions with respect to the determination of the severity of risk involved and the amount of premium. The disclosure of material facts determines the terms of coverage of the policy. Any concealment of material facts may lead to negative repercussions on the functioning of the insurance company's normal business. Thus, the caveat emptor maxim is not applicable to contracts which are based on trust and faith and where the foundation of the contract is based on the parties trust and faith on each other.