What term describes the willful hiding or obscuring of material facts related to insurance?

Concealment refers to the intentional withholding or hiding of material facts that are important for an insurance company to know when assessing a risk or providing coverage. This term is significant in the context of insurance because it pertains to the obligation of the insured to share relevant information that may affect the insurer's decision-making process. If an applicant conceals pertinent information, it can lead to disputes regarding claims or even the denial of coverage altogether.

Material facts are those which would influence the judgment of a prudent insurer in determining whether to accept the risk and on what terms. Therefore, the act of concealment can severely compromise the foundational principle of transparency in insurance transactions, which is essential for fair underwriting and claims processes.

While misrepresentation involves providing false information, and utmost good faith emphasizes the expectation of honesty from both parties, concealment specifically addresses the act of not disclosing necessary facts. Indemnity, on the other hand, relates to the compensation for losses and is not relevant to the act of withholding information.