Final answer:
In insurance, omitting information that affects the issuance or the rate of an insurance contract is called concealment. Concealment refers to intentionally hiding or not disclosing important information to the insurer, which can impact the terms and conditions of the insurance policy.
Step-by-step explanation:
In insurance, omitting information that affects the issuance or the rate of an insurance contract is called concealment. Concealment refers to intentionally hiding or not disclosing important information to the insurer, which can impact the terms and conditions of the insurance policy.
For example, if someone fails to disclose their pre-existing medical condition when applying for health insurance, it would be considered concealment. In this case, the person is intentionally withholding information that could potentially lead to higher premiums or denial of coverage.
Concealment is different from misrepresentation, which is when someone provides false or inaccurate information to the insurer. Fraud is another term related to intentionally deceiving the insurer, while negligence refers to a failure to exercise proper care or diligence.