Concealment Flashcards
What is a concealment?
Concealment is a neglect to communicate that which a party knows and ought to communicate.
What is the injured party entitled to if there’s concealment?
A concealment whether intentional or unintentional entitles the injured party to rescind a contract of insurance.
Generally, what is the obligation of the parties regarding concealment?
Each party to a contract of insurance must communicate to the the other, in good faith, all facts within his knowledge which are material to the contract and as to which he makes no warranty, and which the other has not the means of ascertaining.
How is materiality determined?
Materiality is to be determined not by the event, but solely by the probable and reasonable influence of the facts upon the party to whom the communication is due, in forming his estimate of the disadvantages of the proposed contract, or in making his inquiries.
