Hank bought a farm.There was an old barn on the land.One day Hank decided to take a look at the barn.It was windy,and Hank could see the roof swaying in the wind.Hank ran out of the barn fearing the roof might collapse.While driving home,Hank stopped to see his insurance agent.He insured the barn for $20,000.The agent didn't ask if the roof might collapse,and Hank didn't say anything about it.One week later there was a strong wind and the roof collapsed.Assuming the insurer can prove it,under what legal grounds could the insurer deny payment of the claim?

Question

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The insurer could deny payment of the claim based on concealment. Hank did not disclose that the roof was swaying in the wind and it could collapse, which was a material fact that could affect the insurance risk. By not disclosing this information, Hank concealed the truth from the insurer, which could be considered fraud.

Hank Bought a Farm