What is defined as information that would have influenced the insurer's decision on issuing a policy?

The term that refers to information that would have influenced the insurer's decision on issuing a policy is known as a material fact. In the context of insurance, material facts are critical pieces of information that a prospective insured must disclose to the insurer, as they directly impact the insurer's assessment of risk and decision to provide coverage.

If an applicant fails to disclose a material fact, it can lead to a misinformed underwriting decision, potentially resulting in claim denial or policy cancellation later on. For instance, if a person applying for life insurance has a serious medical condition that they do not disclose, this would be considered a material fact because it could have significantly affected the insurer’s underwriting process and premium determination.

Other concepts, such as representation and misrepresentation, deal with the accuracy of the information provided. Representation involves truthful disclosures made by the applicant, whereas misrepresentation refers to false statements that could affect the insurer's decision. Concealment involves intentionally withholding information, which can also impact the insurer but is more about the act of hiding facts rather than their relevance to the underwriting process. In contrast, material facts specifically emphasize the influence these disclosures have on the insurer's decision-making.