If an insured does not reveal a material fact, what are they guilty of?

When an insured fails to disclose a material fact during the insurance application process, they are deemed guilty of concealment. Concealment specifically refers to the intentional withholding of information that the insurer needs to make an informed decision about the coverage or premium. This act can significantly impact the insurance contract since it may prevent the insurer from adequately assessing the risk involved.

By not disclosing relevant information—such as prior claims, existing conditions, or any other significant details—the insured is impairing the insurer's ability to evaluate the risk associated with providing coverage. Consequently, if a claim is later made based on an undisclosed fact, the insurer may have grounds to deny the claim or void the policy based on the concealment. This understanding highlights the importance of full and honest disclosure in the insurance process.