What is the term for the intentional failure of an insurance applicant to reveal a material fact?

The term that describes the intentional failure of an insurance applicant to disclose a material fact is concealment. In the context of insurance, concealment occurs when an applicant deliberately withholds information that could affect the insurer's decision-making process regarding the risk being underwritten. This can lead to significant consequences, including the potential denial of coverage or a claim if it is later discovered that critical information was intentionally omitted.

Concealment is particularly important in insurance contracts because they are based on the principle of utmost good faith, meaning both parties are expected to act honestly and transparently. If an applicant conceals relevant facts, it undermines this principle and can lead to misunderstandings about the risk involved. Therefore, understanding the implications of concealment is crucial for anyone involved in the insurance industry, including adjusters and applicants alike.

This term has a specific focus on the act of withholding information rather than misrepresentation, which involves providing false information, or fraud, which encompasses a broader range of deceitful practices.