Concealment

What Does Concealment Mean?

Concealment refers to the failure of an insured individual to disclose information that could have influenced the policy they purchased from the insurer. This omission can lead to the nullification of the policy, even if the insurer did not inquire about that information during the policy’s creation.

Insuranceopedia Explains Concealment

The insured does not need to lie directly for an act to be considered concealment. They may simply fail to disclose information that could affect aspects of the insurance, such as the premium price, even if they were not specifically asked about it.

For instance, if the insured was a smoker when applying for health insurance but did not disclose this fact on the application, the insurance company may cancel the policy if this information is later discovered.