Concealment

Definition

• When a person applying for insurance knowingly omits information or lies in order to receive coverage. If an insurer discovers the policyholder's concealment, no distinction is made between a lie or an omission, as both are considered fraudulent and will lead to the voiding of the contract. An example of concealment would be a terminally ill life insurance applicant who lies in order to receive coverage.

Synonyms
conceal, cover-up, omission, disguise, obscuration, secrecy, hiding, smoke screen, hide from others, mask

Related Terms and Acronyms

• Accommodation Line — Definition,
  • As a favour to a broker, insurance companies will sometimes approve coverage to an individual who would not otherwise qualify.
• Fidelity Bond — Definition,
  • Insurance that protects a business from losses due to employee fraud, such as theft, forgery or fraudulent trading.
• Insurance Fraud — Definition,
  • An illegal attempt by an individual or entity to receive insurance benefits that they would otherwise not be entitled to or for an insurance company to deny a legitimate insurance claim.
• Mis-selling — Definition,
  • The act of misleading a client into buying a product or service by deliberately misrepresenting the aforementioned product or service.
• Money Laundering (ML) — Acronym,
  • A process used by individuals to conceal illegally acquired funds by converting them into seemingly legitimate income. The term is generally associated with organized crime and those who need to legitimize illegally earned funds.
• Selection Bias — Definition,
  • A statistical error made when non-random data is added into a dataset.
• Self-Selection Bias — Definition,
  • A selection bias that occurs when individuals join a sample group voluntarily.