What does concealment mean in the context of insurance?

In the context of insurance, concealment refers specifically to the intentional failure to reveal a material fact that could influence an insurer's decision to underwrite a policy or assess risk. This means that if an individual knows certain information that is significant to the insurance contract — such as prior claims or health conditions in health insurance — and intentionally does not disclose this information, it constitutes concealment. This act can lead to a breach of contract, as insurers rely on full disclosure to provide accurate coverage and determine appropriate premiums.

The emphasis on the term "intentional" is crucial because it differentiates concealment from other types of omissions or minor oversights. Not all failures to disclose information amount to concealment; for example, failing to mention less significant or irrelevant details does not typically have the same legal implications. This distinction is important for both insurers, who must assess risk adequately, and insured individuals, who need to understand their obligations when applying for coverage.