What is the legal significance of a material concealment by an insurance applicant?

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A material concealment by an insurance applicant means that they have intentionally withheld important information from the insurance company, which could have affected the insurer's decision to accept or reject their application or to change the conditions of their policy. In such cases, the contract is voidable at the insurer's option, meaning that the insurer can either terminate the contract or modify its terms, depending on the severity of the concealment. If the concealment is deemed to be fraudulent, the contract can be declared void from its inception. Loss payments may also be reduced depending on the degree of the concealment. The insurer is not entitled to a higher premium immediately, but may adjust the premium in the future depending on the level of risk associated with the non-disclosed information.

What Is the Legal Significance of a Material Concealment by an Insurance