Which of the following statements is true about 'concealment'?

The statement regarding concealment as involving withholding material facts is indeed true. In the context of insurance, concealment refers to the deliberate omission of facts that are important for the insurer to assess the risk involved in underwriting a policy. When an applicant or policyholder conceals material information, it can potentially influence the insurer’s decision-making process, such as their willingness to issue a policy or the terms of coverage.

Concealment differs from misrepresentation, which involves actively providing false information. Withholding material facts can significantly affect the insurer's evaluation of claims, leading to denial of coverage or claims based on the argument that the insurer was not provided all relevant information at the time the policy was issued. The importance of full disclosure is paramount in the insurance industry, as it helps ensure that both parties are entering into a fair and informed agreement.