Which statement constitutes concealment in insurance law?

• A. Misrepresentation by silence.
• B. An affirmative act to hide the existence of a material fact.
• C. Both misrepresentation by silence and an affirmative act.
• D. Neither misrepresentation by silence nor an affirmative act.

Answer: (A)

Concealment in insurance law is the deliberate withholding of a material fact from the insurer. The crucial point is that the fact must be known to the applicant or insured and material to the risk; failing to disclose it can void or rescind coverage because the insurer was deprived of essential information used in underwriting or issuing the policy. Silence about a material fact, therefore, fits concealment well—it's a form of misrepresentation by omission, since the non-disclosure affects the insurer’s understanding of the risk. An affirmative act to hide a material fact can also be concealment in many contexts, but the statement that best captures the typical definition emphasizes the nondisclosure through silence.