Any fact or circumstance which would affect the judgement of a prudent insurer in deciding whether to accept a proposed insurance and, if so, at what rate of premium, and on what terms. For example, in motor insurance, a speeding conviction is a material fact as it could influence the rating of a risk. Some material facts do not need to be disclosed:
- facts of law,
- facts of public knowledge,
- facts that lessen the risk;
- facts that the insured does not know,
- facts where the insurer has waived its rights.
See also Material Representation.
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