What is the term for an insurance application where the applicant fails to disclose known material facts?

The term that accurately describes an insurance application in which the applicant fails to disclose known material facts is concealment. This concept refers specifically to the intent or inadvertent action of withholding critical information that could influence the insurer's decision-making process. When a person deliberately or unintentionally omits relevant facts from their application, they are practicing concealment, which can lead to consequences such as policy cancellation or denial of claims.

While misrepresentation involves providing false information or altering the truth, it is distinct from concealment because it focuses on presenting inaccurate details rather than failing to mention known information. Fraud, on the other hand, typically involves a more deliberate and deceptive act intended to gain an unfair advantage or benefit, while waiver relates to the relinquishment of a known right or privilege. Therefore, understanding concealment as the specific failure to disclose is crucial in the context of insurance practices and regulations.