Material Facts

Definition - What does Material Facts mean?

A material fact is a critical fact that is highly relevant for insurance purposes. If a policyholder withholds a material fact and the insurer issues a policy without knowledge of this fact, then it might constitute insurance fraud. Withholding certain material facts can also void policies entirely.

Insuranceopedia explains Material Facts

There are a number of different material facts whose withholding could void an insurance policy. For example, if a person with terminal cancer applies for life insurance and does not disclose the cancer diagnosis, or lies about it, this could void the policy. This is because the material fact that the person had cancer is deemed so important to the insurance coverage that withholding it could violate policy terms and conditions.

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