Which term applies when an insured gives incorrect material information to the insurer?

The term that applies when an insured provides incorrect material information to the insurer is "Material Misrepresentation." This concept refers to a situation where information is intentionally or unintentionally misrepresented in a way that is relevant to the risk assessment of the insurance policy.

When an applicant for insurance submits inaccurate details regarding their circumstances—such as their health status, driving record, or prior claims history—they potentially affect the insurer’s decision-making process. If the insurer had known the true information, they might have charged a different premium, adjusted coverage, or even denied the policy altogether. Thus, material misrepresentation can lead to invalidation of the insurance contract, as it undermines the fundamental trust necessary for the insurance agreement.

The other terms are related but do not capture the essence of providing incorrect material information. Waiver refers to the voluntary relinquishment of a known right, while estoppel prevents a party from denying or asserting something contrary to what has been established as the truth. Concealment, on the other hand, involves failing to disclose pertinent information rather than providing incorrect information. Each of these concepts plays a role in the insurance landscape, but material misrepresentation specifically addresses the issue of giving false information during the application process.