Which term refers to an insurance policy that is considered void due to circumstantial deception?

The term that refers to an insurance policy that is considered void due to circumstantial deception is a voidable contract. In the context of insurance, a voidable contract is one that may be declared void at the discretion of one of the parties involved, typically due to misrepresentation or false information presented during the application process. If an applicant intentionally or unintentionally provides misleading information that affects the underwriting decision, the insurer has the right to void the contract based on this deception.

A fraudulent policy typically refers to policies obtained through intentional deception, but the term "voidable contract" more accurately describes the condition under which the policy can be canceled due to circumstantial factors. An unenforceable contract, on the other hand, may not hold legal weight for reasons unrelated to deception, such as issues with legality or terms. Discretionary service does not apply in this context as it relates more to a type of service rather than a legal classification of a contract.