When an applicant intentionally fails to disclose a material fact, this is known as what?

The situation described revolves around an applicant’s intentional decision to withhold important information that could influence an insurance company's decision. This act is identified as concealment.

Concealment specifically refers to the failure to disclose a known material fact that could affect the risk profile of the applicant. In the context of insurance, material facts are those that a reasonable insurer would want to consider before issuing a policy. By deliberately omitting such information, the applicant jeopardizes the insurer's ability to assess the risk accurately.

While misrepresentation also involves incorrect information, it typically refers to false statements that may be made, whether intentionally or unintentionally, about material facts. Fraud encompasses a broader scope, including any deceptive practices, but concealment is a more precise term for the specific action of hiding material information. Waiver, on the other hand, relates to the intentional relinquishment of a known right, which does not directly apply to the act of failing to disclose facts.

Understanding these distinctions is crucial in personal lines insurance as they impact not only the underwriting process but also potentially the validity of a claim should the need arise.