Hank bought a farm that had an old barn.He noticed one day that the roof of the barn was swaying in the wind.Hank went to see his insurance agent and 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

Quizplus · Accepted Answer

Concealment is the failure to disclose a material fact, and in this case, Hank did not disclose that the roof of the barn was swaying in the wind. This fact could have influenced the insurer's decision to insure the barn or at what cost, and therefore, the insurer could deny payment of the claim based on concealment.

Hank Bought a Farm That Had an Old Barn