What is it called when an applicant fails to disclose material information to the insurer?

The situation where an applicant fails to disclose material information to the insurer is referred to as concealment. This term specifically describes a scenario in which relevant facts are intentionally withheld during the application process, which can significantly affect the insurer's decision to provide coverage or set premiums.

In the context of insurance, material information is any fact that could influence the insurer's judgment regarding the risk presented by the applicant. When an applicant conceals this kind of information, it can lead to consequences such as denial of a claim or cancellation of the policy, as the insurer was not given the full picture to make an informed underwriting decision.

Misrepresentation involves providing false information rather than failing to disclose, and fraud implies a more intentional and deceptive action that results in gain at another's expense. Waiver pertains to the voluntary relinquishment of a known right, which does not apply to the non-disclosure of information in this context. Understanding concealment helps clarify the responsibilities of applicants in the insurance process and emphasizes the importance of full disclosure to maintain the integrity of the insurer-insured relationship.