What is the difference between utmost good faith and good faith in insurance transactions? choose one of the options. a.) Utmost good faith is a statutory requirement, while good faith is a contractual requirement. b.) There is no clear demarcation in law between utmost good faith and good faith in typical insurance transactions. The terms are sometimes used interchangeably. c.) Utmost good faith applies only to policyholders, while good faith applies to underwriters and claims handlers