Which term refers to the omission of a material fact in an insurance application?

The term that accurately describes the omission of a material fact in an insurance application is concealment. In the context of insurance, concealment occurs when an applicant intentionally or unintentionally fails to disclose important information that could affect an insurer's decision to provide coverage or the terms of that coverage. Such omissions can lead to claims being denied or policies being rescinded since insurers base their evaluations on the information provided.

Warranties refer to promises made in the policy that certain conditions will be met, while representations are statements made by the applicant during the application process that they believe to be true. Misrepresentation involves providing false information rather than omitting it. Thus, the action of withholding a key fact is specifically categorized as concealment, which greatly impacts the insurer's risk assessment and underwriting process.