A fact that might alter an insurer's decision to agree to provide insurance to a person or alter the terms and conditions or the rate of premium on a policy
In insurance, it refers to a fact which is so important that the disclosure of it would change the decision of an insurance company, either with respect to writing coverage, settling a loss, or determining a premium Usually, the misrepresentation of a material fact will void a policy (LE)
Anyone seeking insurance must disclose all the material facts about the risk involved that he or she knows, or that they ought to know In other words, the insured should not hide anything The trouble is, certain facts that the underwriter may deem "material" may not always be known to the insured person The best principle to follow is: "If in doubt, mention it anyway " If you are not sure whether some other piece of information may or may not be relevant, tell your insurers anyway
A fact is material if it is one which the agent should have realized would be likely to affect the judgment of the principal in giving his consent to the agent to enter into the particular transaction on the specified terms
A fact that, had it been known at the time policy application was made, would have caused an insurance company to decline coverage or issue entirely different coverage
An important fact about one or more of the issues involved in the contract which, if known to all parties, may result in a different contract or no contract at all
A fact that would be important to a reasonable person in deciding whether to engage in a particular transaction; an important fact as distinguished from some unimportant or trivial detail
Any information used in your insurance application that would have changed your eligibility for coverage, price of coverage or conditions for acceptance
A fact is material if it is one which the agent should realize would be likely to affect the judgment of the principal in giving his consent to the agent to enter into the particular transaction on the specified terms
Information that would affect an insurance company accepting a policy, or the premium it would charge, such as previous driving convictions Failing to disclose a material fact could invalidate a policy
Something affecting a contract of insurance important enough to change the agreement between the company and the policyholder Material facts must be disclosed if asked about Failure to do so may result in a voiding of the policy involved An exception to this general rule is that, with respect to ocean marine insurance, all material facts must be disclosed whether the insurer asks the appropriate question or not
A material fact is any information about a specific property that could affect a buyer's decision to purchase it, such as an upcoming zoning change in the neighborhood
In insurance, vital information required to make an underwriting decision A statement of something that is done or exists is of such importance that disclosure (or failure to disclose) would alter an underwriting decision or loss settlement