What are the differences and similarities between a concealment and misrepresentation?



Insured withholds information of material facts from the insurer

Insured makes erroneous statements of facts with the intent of inducing the insurer to enter into the insurance contract.

Materiality is determined by the same rules applied in cases of misrepresentation.

Concealment on the part of the insured has the same effect as a misrepresentation and gives the insurer the right to rescind the contract.

Whether intentional or not intentional, the injured party is entitled to rescind the contract of insurance on ground of concealment or false representation.

Rules on concealment and representation apply likewise to the insurer since the contracts of insurance is said to be one of utmost good faith on part of both parties to the agreement.