What term describes the failure to speak when there is an obligation to do so?

The term that describes the failure to speak when there is an obligation to do so is non-disclosure. In the context of insurance, non-disclosure occurs when a party does not disclose relevant information that they are legally or ethically obligated to reveal, potentially impacting the other party's decision-making.

Non-disclosure is significant because it can lead to a misunderstanding of the risk involved and can affect the terms of the contract. For instance, a potential policyholder may fail to inform the insurer about a previous claim or a pertinent health issue when applying for coverage. This lack of communication can be deemed as withholding critical information that could influence the insurer's assessment of risk.

It’s important to note that misrepresentation involves providing false information, while concealment relates specifically to the intentional act of hiding information rather than simply failing to disclose it. Fraud encompasses broader deceptive practices, including both misrepresentation and concealment, but is generally more extreme in intent and consequence. Thus, non-disclosure is the more accurate term for the scenario where there is an obligation to speak but a failure occurs.