What term describes deliberate withholding of material facts in an insurance context?

• A. Concealment
• B. Fraud
• C. Warranty
• D. Waiver and estoppel

Answer: (A)

Withholding material facts on purpose is concealment. In insurance, material facts are details that would influence how the insurer underwrites, prices, or approves coverage. When someone intentionally hides such information, the insurer can view the policy as obtained through concealment, which may allow voiding the contract or denying a claim. Fraud is a broader concept that includes deceit such as concealment or misrepresentation, but the act described—deliberate withholding of material facts—fits the term concealment precisely. A warranty is a promise about a fact that, if breached, can affect coverage, but it’s not about withholding information. Waiver and estoppel involve giving up rights or preventing enforcement based on prior conduct, not the act of withholding facts.