Question

An applicant knowingly fails to communicate information that would help the underwriter make a sound decision regarding coverage. This is an example of?

1) Misrepresentation
2) Fraud
3) Negligence
4) Concealment

Answer 1

The correct answer is Concealment. Concealment occurs when an applicant intentionally fails to disclose important information that would affect the underwriter's decision about coverage.

Step-by-step explanation:

The correct answer is 4) Concealment.

Concealment occurs when an applicant intentionally fails to disclose important information that would affect the underwriter's decision about coverage. In the context of insurance, concealment can be considered a type of fraud. A concealing applicant may hide facts or mislead the underwriter, which can lead to an incorrect assessment of risk and potentially result in an unfair premium or denial of coverage.

For example, if an applicant fails to disclose a pre-existing medical condition when applying for health insurance, they are concealing important information that would impact the underwriter's decision and assessment of risk.