Okuzeka
Insurance vocabulary · Underwriting & Risk

Material fact

Meaning in insurance, with examples

nounCommon term

In insurance, material fact means: Any information that would affect an insurer's decision to accept a risk or the premium it charges, and that the customer must therefore disclose.

In Turkish: önemli husus, riski etkileyen önemli bilgi

How it is used

A legal term in contracts and claims disputes. Customers must disclose material facts; if they fail to disclose or misrepresent one, the insurer may reduce the claim or avoid the policy, depending on the law.

Example sentences

  1. Previous fires at the factory are a material fact and must be disclosed.

  2. The insurer argued that the heart condition was a material fact the customer had hidden.

Common collocations

  • disclose a material fact
  • non-disclosure of a material fact
  • misrepresent a material fact
  • utmost good faithThe principle that both sides of an insurance contract must be completely honest and share all important information with each other.
  • proposal formThe form a customer fills in when applying for insurance, giving the facts the insurer needs to assess the risk.
  • underwritingThe process of studying a risk, deciding whether to insure it and setting the price and conditions of the policy.
  • pre-existing conditionA health problem that a person already had, or had symptoms of, before their health or life insurance started.

More terms: Underwriting & Risk

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This page explains English vocabulary for learners. It is not financial advice.