What is it called when someone provides misleading information to the insurer on an application?

The term that describes providing misleading information to an insurer on an application is known as misrepresentation. This occurs when an applicant fails to present the full truth or knowingly provides false information, which can influence the insurer's decision to issue a policy or the premiums charged. Misrepresentation can be seen as a serious issue because it undermines the trust that is fundamental to the insurance contract. Insurance relies on honest disclosures, and when an applicant misrepresents facts, it can lead to denied claims and policy cancellations.

The other terms referenced, such as concealment, involve the failure to disclose information rather than actively providing false details, while waiver and estoppel relate more to legal principles regarding rights and obligations in contracts, rather than the act of misleading the insurer in the application process. Understanding misrepresentation is crucial for both insurers and insureds to maintain a fair and transparent contract system in insurance transactions.