What is the term for the failure to disclose known facts in an insurance application?

The term for the failure to disclose known facts in an insurance application is "concealment." In the context of insurance, concealment refers to the intentional withholding of important information that could affect the underwriting process or the insurer's decision to issue a policy. This can include omitting significant medical history, prior claims, or any other relevant details that would influence the risk assessment by the insurance company.

In insurance contracts, all parties are expected to act in good faith. When an applicant conceals vital information, it can lead to the denial of claims or the voiding of the policy altogether if the insurer finds out about the nondisclosed facts later. Thus, understanding the concept of concealment is crucial for both agents and applicants to maintain transparency and uphold the integrity of the insurance process.

The other terms do not accurately reflect the failure to disclose known facts. "Misrepresentation" would involve providing false information rather than simply not disclosing it. "Ambiguity" relates to unclear or vague terms in a contract, and "miscommunication" refers to failures in communication that can occur between parties but does not directly address the issue of failing to disclose known facts.