Which of the following is a characteristic of utmost good faith?

The principle of utmost good faith, also known as "uberrima fides," is fundamental in insurance contracts. It requires that all parties involved in the contract, particularly the insured, must disclose all material facts that could influence the other party’s decision-making. This means that the insured must provide complete and honest information regarding any risks, conditions, or significant factors related to the insurance policy they are seeking. This characteristic fosters transparency and trust between the insurer and the insured, ensuring that both parties have a clear understanding of the terms and conditions involved.

The other choices do not accurately represent the essence of utmost good faith. The idea of negotiable terms relates more to contract flexibility rather than the fundamental obligation of transparency. Cancellation provisions depend on specific contract terms and conditions rather than the duty of good faith. Misrepresenting terms undermines the principle of utmost good faith, as it puts one party at a disadvantage and violates the trust that is supposed to be inherent in the relationship between insurer and insured.