In insurance terminology, what does concealment refer to?

Concealment in insurance terminology refers to the failure to disclose a material fact, which is vital for an insurer to make an informed decision about the risk they are underwriting. In insurance contracts, material facts are those that would influence the judgment of the insurer in determining whether to provide coverage, and if so, on what terms. When an applicant for insurance fails to disclose these facts, it can lead to issues with claims or even policy cancellation, as the insurer may consider the concealed information critical to their risk assessment.

This concept is distinct from misrepresenting information, which involves providing false information rather than simply not disclosing pertinent facts. While concealing information might sometimes be intentional, it doesn't always imply that there is an intention to deceive as found in the act of providing false documentation. Thus, failure to disclose significant details about one's health, financial status, or risk factors directly aligns with the definition of concealment in insurance practices.