Final answer:
Mr. Blankman's action of intentionally not disclosing a previous medical treatment on his insurance application is defined as concealment. This exclusion of important health information is considered a form of insurance fraud, as opposed to misrepresentation, twisting, or unfair discrimination.
Step-by-step explanation:
Mr. Blankman’s act of intentionally leaving out a prior medical treatment from his insurance application is known as concealment. Concealment happens when an individual withholds material information that should be disclosed during the insurance application process. This is considered a form of insurance fraud because insurance companies need accurate information to properly assess risk and set premiums.
Misrepresentation is similar in that it involves providing false information, but the key difference is that misrepresentation refers to giving incorrect details, whereas concealment refers to the omission of information. Twisting is a practice where an insurance agent misleads a customer to terminate an existing policy and purchase a new one, primarily for the agent's benefit. Lastly, unfair discrimination occurs when an insurer discriminates in underwriting or pricing on the basis of race, color, creed, or national origin. In this case, concealing a health condition is not related to discrimination.