Concealment is the failure to disclose a material fact that would affect risk selection, pricing, or the decision to insure.
In insurance, concealment is most damaging when it affects material underwriting facts such as prior claims, pre-existing conditions, or ownership and usage details that were changed before application.
Underwriting impact
Underwriters rely on disclosures to assign class and pricing. If material facts are hidden, the insurer may have accepted the policy at the wrong premium or with the wrong terms. That can trigger rescission rights, premium adjustments, or denial of some claims.
Claims and contract effects
When a claim arises, the insurer tests whether the withheld information was material when the policy was issued. If concealment is proven, the claim may be denied and the policy may be voided for underwriting misrepresentation.