What is the term for when an insurance company expects full disclosure of information from the insured?

The term that refers to the expectation that an insurance company holds regarding full disclosure of information from the insured is known as concealment. In insurance contracts, both parties have an obligation to communicate important information truthfully. When the insured fails to disclose material facts or deliberately withholds information that could influence the insurer's decision, this is classified as concealment. This is critical because certain undisclosed risks or facts may affect the terms of coverage or the insurer's willingness to enter into the contract.

This concept aligns with the principle of utmost good faith (uberrima fides) that underlies insurance agreements, emphasizing that the insured should provide all relevant information for the insurer to assess the risk properly. Therefore, a breach of this duty through concealment can lead to unfavorable consequences for the insured, including the denial of claims or cancellation of the policy.

The other terms have different meanings within insurance context but do not apply to the direct expectation of disclosure:

• Waiver refers to the relinquishment of a right or privilege, not specifically related to disclosure obligations.

• Estoppel prevents a party from arguing something contrary to a previous claim or behavior they made known, but it does not directly address the issue of disclosure.

• Indemnity involves compensating for