What does concealment in insurance refer to?

Concealment in insurance specifically refers to the failure to disclose known facts that are relevant to the insurer's decision-making process when underwriting a policy or handling a claim. It is critical because insurers rely heavily on the information provided by the insured to assess risk accurately and determine appropriate premiums or coverage terms. When an individual conceals pertinent information—such as previous claims history, existing health conditions, or other significant facts—it hampers the insurer's ability to make informed decisions. This act can lead to serious repercussions, such as the denial of a claim or cancellation of the policy, as insurers expect full transparency and honesty from policyholders.

While hiding personal information from insurers, not submitting claims on time, and limiting coverage options are related to the overall insurance process, they do not specifically encapsulate the concept of concealment. Concealment is fundamentally about withholding information that should be disclosed, which directly impacts the relationship and obligations between the insurer and the insured.