What could happen if a policyholder intentionally conceals information?

When a policyholder intentionally conceals information, it can significantly impact the insurance contract's integrity. The principle of utmost good faith (uberrimae fidei) requires both the insurer and the insured to be honest and transparent in their dealings. If a policyholder is found to have concealed material information, this undermines the insurer's ability to assess risk accurately at the time of underwriting the policy.

As a result, the insurer may have the right to declare the policy void. This means that the policy is treated as if it never existed, essentially nullifying any coverage. This can lead to serious consequences for the policyholder, especially if a claim arises where they would expect coverage. The insurer may refuse to pay out on any claims based on the policy because the insured's failure to disclose relevant information affects the insurer's capacity to make informed decisions regarding risk and premium rates.

This situation starkly contrasts with the other options, which suggest that the insurer would continue to uphold the policy or claims despite the concealment. Such scenarios would contradict the established legal principles surrounding insurance contracts.