What is the term for an act of deceit involving the misrepresentation of a material fact?

The term for an act of deceit involving the misrepresentation of a material fact is fraud. In the context of insurance, fraud typically occurs when an individual intentionally provides false information or omits significant facts that would impact the underwriting process or claims assessment. This misrepresentation undermines the integrity of the insurance contract and can lead to severe legal and financial consequences for both the insurer and the insured.

The other terms presented do not pertain to deceit or misrepresentation. A grace period refers to the time allowed for a policyholder to make a payment after the due date without lapsing coverage. Funding relates to the mechanisms of raising capital or financial resources, and the free look period grants policyholders a specified amount of time to review an insurance policy and return it for a full refund if they choose not to proceed. Understanding the definition of fraud in this context is crucial for recognizing its implications in insurance transactions.