What type of contract requires full and accurate disclosure of risk factors involved by the applicant?

A contract that requires full and accurate disclosure of risk factors involved by the applicant is known as a contract of utmost good faith. This type of contract is crucial in insurance transactions, where the insurer relies heavily on the information disclosed by the applicant to assess risk accurately.

In the context of insurance, utmost good faith (or "uberrima fides") obligates both parties to act honestly and not withhold any critical information. The applicant must reveal all relevant details that could affect the decision-making process regarding coverage and premium rates. Failure to disclose such information can result in the contract being voided or claims being denied.

Other types of contracts may not emphasize disclosure in the same manner. For example, a contract of adhesion is a take-it-or-leave-it agreement where one party has significantly more power and the terms are established by one side, thus not necessarily focusing on mutual disclosure. A contract of indemnity pertains to compensating losses and is not specifically focused on disclosures about the risk factors involved. Implied contracts are formed by the actions or conduct of the parties rather than explicit agreements, and they likewise do not require the same level of disclosure as a contract of utmost good faith.