What must an insurance applicant do regarding material facts when applying for coverage?

When applying for insurance coverage, the applicant has a duty to disclose all relevant information to the insurer. This obligation stems from the principle of utmost good faith, or "uberrimae fidei," which governs insurance contracts. This principle requires both parties, but especially the insured, to be honest and transparent about material facts that could influence the insurer's decision to provide coverage or the terms of coverage.

Material facts are those that would affect the insurer's assessment of risk; for example, significant claims history, changes in property characteristics, or any other relevant issues. By disclosing this information, the applicant helps the insurer accurately evaluate the risk involved, which in turn ensures that the insurance policy is appropriate for the individual circumstances of the applicant. Failure to disclose material facts can lead to issues such as denial of coverage or cancellation of the policy later, should the undisclosed facts come to light.

The other options suggest actions that undermine the transparency required in the insurance application process. Withholding information can lead to significant negative consequences for the applicant, while providing personal opinions instead of factual disclosures does not satisfy the obligation to inform the insurer. Assuming knowledge on the part of the insurer neglects the importance of communication and shared understanding in the insurance relationship.