What is referred to as a fact that affects an insurer's decision to provide or maintain insurance or to settle a claim?

A material fact is crucial in the context of insurance, as it directly influences how insurers assess risk and make decisions regarding coverage, premiums, or claim settlements. When an insurer evaluates an application for coverage or considers a claim, they rely on accurate and complete information. If a fact is deemed material, it means that it would impact the insurer’s underwriting decision or the outcome of a claim. This could include key details about the insured property, the insured's history of claims, or any other significant factors that could affect the underwriting process.

In contrast, other concepts like named insured outline who is covered by the policy, moral hazard pertains to the risk of loss due to an insured party’s unethical behavior, and mortgagee rights involve the interests of lenders in property insurance. While these terms are important in their own contexts, they do not define how information affects an insurer's decision-making process in terms of coverage or claims.