What is the practice of withholding material information from an insurance company called?

The practice of withholding material information from an insurance company is known as concealment. This term specifically refers to the failure to disclose important information that could affect the insurance transaction or the underwriting process. When an applicant does not provide relevant facts that could influence the insurer's decision to issue a policy or the terms of that policy, it constitutes concealment.

In the realm of insurance, concealment can lead to serious consequences, including the denial of claims or rescission of the policy. It's important for both the insurer and the insured to have a clear understanding of all relevant information to ensure that the insurance contract is valid and enforceable.

The other concepts presented, such as representation, fraud, and misrepresentation, have different definitions. Representation refers to the statements made by the insured that are believed to be true but may not necessarily reflect the complete picture. Fraud typically involves intentional deception for personal gain, while misrepresentation involves providing false or misleading information. These terms highlight different elements of dishonesty and failure to communicate truthfully in the insurance context, but specifically withholding material information is best characterized as concealment.