In life insurance law, concealment is essentially nondisclosure.

• A. True
• B. False
• C. Only if material
• D. Not applicable

Answer: (A)

Concealment means withholding information that the insurer has a right to receive because it affects the risk. In life insurance, applicants must disclose material facts about health, lifestyle, or other risk factors. When a material fact is concealed, it’s a form of nondisclosure—the insurer did not get the information needed to assess the risk. Because the contract rests on truthful disclosures, concealment undermines underwriting and can make the policy voidable or a claim contestable, depending on the law and policy terms. The materiality requirement matters: if the omitted fact wouldn’t have affected underwriting, the issue may be different, but the fundamental idea is that concealment is essentially nondisclosure of material information.