Intentional withholding of important information that could impact insurance decisions is known as?

The intentional withholding of important information that could impact insurance decisions is called concealment. In the context of insurance, it involves a policyholder intentionally not disclosing certain facts that could influence an insurer's decision to underwrite a policy or determine the premium rate. This behavior can significantly impact the insurance contract, as insurers rely on full transparency to assess risk accurately. If an insurer discovers concealment, it may have the right to deny claims or rescind the policy, as the lack of information alters the basis on which the policy was issued.

In comparison, a warranty refers to a promise made by the insured regarding certain facts that must be true for the policy to be valid. Representation involves providing truthful information to an insurer, while a waiver is the voluntary relinquishment of a known right. Understanding these terms is critical because they correspond to different obligations and consequences within the insurance contract.