What happens if an applicant intentionally conceals information from an insurer?

When an applicant intentionally conceals information from an insurer, the insurer typically has grounds to void the policy due to the principle of utmost good faith, also known as "uberrima fides." This principle governs the relationship between the insurer and the insured, requiring both parties to disclose all relevant information at the time of application.

If an applicant withholds or misrepresents material facts—whether intentionally or through negligence—the insurer may consider the policy null and void. This is because the insurer relies on the information provided to assess risk and determine the premium. If it is discovered that critical information was hidden, particularly if it would have influenced the insurer's decision to accept the risk or set the appropriate premium, the insurer can choose to void the policy.

In contrast, renewing the policy, requiring payment of claims, or imposing fines are not direct consequences of such concealment. The insurer’s primary recourse is to void the contract entirely rather than renew it or pay out claims based on a contract that was misrepresented or entered into under false pretenses. This position protects the integrity of the insurance contract and upholds the trust placed by insurers in applicants' honesty.