What is known as the act of misleading the insurance company regarding material facts?

The act of misleading an insurance company regarding material facts is best defined as misrepresentation. Misrepresentation occurs when an individual presents false information or omits important details that could influence the insurance company's decision to provide coverage or determine the terms of a policy. This can involve providing incorrect facts about a situation or failing to disclose relevant details that an insurer would consider necessary for making an underwriting decision.

While fraud generally involves intentional deceit meant to secure undue benefits, it is a broader term that encompasses various dishonest acts, including misrepresentation. Deceptive practices refer to a wide range of actions that mislead someone, often in a business context, but the specific act of misleading an insurer about material facts is more accurately categorized under misrepresentation. Omission involves leaving out crucial information but does not inherently imply an intent to deceive, which is a key aspect of misrepresentation. Therefore, misrepresentation is the most precise term for the act described in this context.