What is the term used for the intentional withholding of material facts that affect an insurance policy's validity?

The term that accurately describes the intentional withholding of material facts that can significantly impact an insurance policy's validity is concealment. In the context of insurance, concealment occurs when an applicant fails to disclose information that is important for the insurer to know when determining coverage eligibility or policy terms. This could involve omitting details about pre-existing medical conditions, risky activities, or other pertinent factors that could influence the underwriting process or claims.

Concealment is particularly critical because it undermines the principle of utmost good faith, which is central to insurance contracts. Insurers rely on accurate and complete information to assess risk and set premiums accordingly. If a relevant fact is not disclosed, it can lead to disputes over claims or even voiding of the policy.

While misrepresentation refers to providing false information rather than withholding it, and fraud involves deceitful practices for personal gain, concealment specifically pertains to the non-disclosure aspect. Deception, more broadly defined, could encompass various dishonest behaviors, but it does not specifically target the act of withholding information in an insurance context. Thus, concealment stands out as the most precise term for this scenario.