Which statement is NOT true about an insurance policy?

The statement that the concept of utmost good faith only applies to the insured is not true because the principle of utmost good faith, also known as "uberrima fides," applies to both the insurer and the insured. This principle requires both parties to act honestly and disclose all relevant information to each other. In the context of an insurance contract, both the insurer and the insured have obligations to maintain a high level of honesty and transparency. For the insured, this means providing complete and truthful information when applying for coverage. For the insurer, it involves clearly outlining the terms and conditions of the policy without hiding critical information that could affect the insured's understanding of their coverage.

In contrast, the other statements correctly reflect aspects of insurance policies. The insurer does generally hold more power in the creation of an insurance policy, as they draft the terms and conditions. Ambiguities in contracts of adhesion, which insurance policies typically are, are usually interpreted in favor of the insured since the insured had less control over the terms of the contract. Lastly, an insurance policy does indeed aim to protect the item insured, providing financial support in the event of a loss or damage.