Final answer:
A false material statement made by an insurance applicant is an example of fraud, which involves intentional deception for unauthorized benefits. The closest term to 'hypothesis' is 'suggestion', as both represent an untested assumption or idea.
Step-by-step explanation:
A false material statement made by an applicant for insurance is an example of fraud. In the context of insurance, fraud is the intentional deception or misrepresentation that an individual makes, knowing it could result in some unauthorized benefit to themselves or some other person. The key element is the intent to deceive. On the other hand, concealment involves the failure to disclose pertinent information, representation refers to statements that are believed to be true to the best of the applicant's knowledge, and warranty is a guarantee that certain statements or facts are true.
As for the multiple-choice question provided, the word that is closest to the same meaning as 'hypothesis' is 'suggestion'. A hypothesis is a tentative explanation or assumption that is yet to be tested. Unlike a fact or a law, it is not confirmed or universally accepted, and unlike a formula or a conclusion, it is not a definitive answer or end-result of a process but rather the start of an investigative process.