What is the term for failing to disclose pertinent information when applying for an insurance policy?

The term that best describes the failure to disclose pertinent information when applying for an insurance policy is concealment. In the context of insurance, concealment refers specifically to the situation where an applicant intentionally withholds material information that could influence the insurer's decision to issue a policy or the terms of that policy.

This can lead to significant consequences, including the potential denial of a claim or cancellation of the policy if the insurer discovers that important information was not disclosed. Concealment is taken very seriously in insurance contracts because they are based on the principle of utmost good faith, which requires both parties to be honest and transparent.

On the other hand, misrepresentation involves providing false information or misleading details that might not be material or relevant. Fraud generally refers to a broader category of deceitful practices aimed at gaining benefits unlawfully, which may include various forms of misrepresentation. Disclosure simply pertains to the act of revealing information, but when important information is intentionally withheld, it specifically falls under concealment.