When good faith is compromised, it is considered fraud. Some examples include:
- Concealment — Withholding or hiding material (important) information;
- Intentional misrepresentation — Purposely lying or misstating the facts when making a representation; and
- Breach of warranty — Intentionally lying or misstating the facts when making a warranty.
If an insurer is able to prove that an insured committed fraud, it may be able to deny the payment of a claim for a loss.