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The term that best describes a situation where an insured party discloses false information is misrepresentation. Misrepresentation occurs when an individual provides false or misleading statements, which can affect the underwriting process and the overall insurance contract.

In the context of insurance, accurate disclosure of information is crucial because insurers rely on the information provided by the insured to assess risk and determine coverage terms and premiums. If the insured intentionally or unintentionally fails to disclose accurate information or provides false information, it can nullify the contract or lead to denial of claims.

Underwriting refers to the process by which insurers evaluate the risk of insuring an individual or entity and determine appropriate premiums. While it is related to the evaluation of disclosures, it is a broader term and does not specifically denote the act of providing false information.

Exclusion refers to specific conditions or circumstances that are not covered by the insurance policy. This does not relate directly to the act of providing false information.

Breach of duty typically indicates a failure to fulfill an obligation or responsibility, which may involve misrepresentation but is not synonymous. Therefore, misrepresentation precisely captures the scenario described in the question.