Concealment

AAA

DEFINITION of 'Concealment'

As it relates to insurance, the act of purposefully not reporting information that would affect the issuance or rate of an insurance contract.

If the information cannot be known to the insurer and is known to be material by the insured, concealment of that information can give the insurer grounds to nullify the contract or not pay out on claim related to that material information.

INVESTOPEDIA EXPLAINS 'Concealment'

When it comes the potential voiding of an insurance contract, it doesn't matter if somebody lies when asked a question (misrepresentation), or isn't asked a specific question and the information is simply withheld (concealment). Both are considered fraudulent and give the insurer grounds to void the contract.

RELATED TERMS
  1. Accident And Sickness Insurance ...

    This is a Canadian government statute that defines the acceptable ...
  2. Breach Of Contract

    Violation of any of the agreed-upon terms and conditions of a ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Onerous Contract

    A type of contract where the costs involved with fulfilling the ...
  5. Insurance Underwriter

    A financial professional that evaluates the risks of insuring ...
  6. Noncancellable Insurance Policy

    A life or disability insurance policy that an insurance company ...
Related Articles
  1. Understanding Your Insurance Contract
    Insurance

    Understanding Your Insurance Contract

  2. Exploring Advanced Insurance Contract ...
    Home & Auto

    Exploring Advanced Insurance Contract ...

  3. Tips For Resolving Disputes With Your ...
    Options & Futures

    Tips For Resolving Disputes With Your ...

  4. The History Of Consumer Credit Rights
    Credit & Loans

    The History Of Consumer Credit Rights

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center