Final answer:
Insurers are allowed not to communicate information if it is confidential. Withholding favorable information, irrelevant information, or information that was misrepresented is generally not allowed, unless confidentiality is a concern.
Step-by-step explanation:
Insurers are at times permitted not to disclose certain pieces of information, particularly in situations where the information is deemed confidential. This is to ensure privacy and to adhere to legal standards that protect sensitive information.
For instance, any information that falls under the category of confidential medical data, trade secrets, or personally identifiable information may be withheld from communication even if it would otherwise be pertinent.
Importantly, withholding information that is favorable to the insured without a confidentiality requirement, or avoiding disclosure due to its irrelevance or because it was misrepresented, is generally not permitted and could lead to legal implications for the insurer.