What is the term for failing to disclose a known material fact in an insurance application?

The term for failing to disclose a known material fact in an insurance application is concealment. In the context of insurance, concealment refers to the intentional withholding of important information that could affect the risk assessment or underwriting process. This can lead to significant consequences, such as a claim being denied or a policy being canceled if the insurer discovers the concealed information post-application.

Concealment can seriously impact an insurance transaction because insurance is based on the principle of utmost good faith, requiring both the insurer and the insured to provide transparent and complete information. When an applicant fails to disclose relevant details, it undermines this trust, potentially leading to unfavorable outcomes for the insurer and the insured alike.

The other options represent different legal concepts that do not directly relate to the act of omitting known material facts in an application. For instance, misrepresentation involves providing false information rather than simply failing to disclose it, while waiver and estoppel pertain to the relinquishment of a right or legal principle rather than the failure to disclose facts. Overall, understanding concealment is crucial for recognizing the responsibilities of applicants in the insurance process.