The appeal is dismissed.

The grounds of appeal are examined.

1. The deception, which is a requirement for fraud, includes all active or passive acts that breach one another’s duty of good faith and sincerity in property transaction. The deception by passive acts refers to the deception by a person subject to duty of disclosure under the law, who is unaware of the other party’s mistake as to a certain fact (see, e.g., Supreme Court Decision 98Do3263, Dec. 8, 1998). The deception by omission may also be acknowledged in cases where the insurer violates the duty of disclosure under the Commercial Act when entering into an insurance contract with the insurer.

However, even if a person concludes an insurance contract with an insurer, insurance proceeds are paid only if an accident occurs. Thus, the violation of the duty of disclosure should be determined by examining the parts and degree of injury suffered before the conclusion of the insurance contract, the type and degree of symptoms of the existing disease, the period and frequency of injury or disease treatment, the timing and frequency of occurrence of the injury or disease, the existence and nature of the insurance as well as the motive or progress of the insurance contract, as in the case of concluding the insurance contract with intent to arbitrarily manipulate the insurance accident, etc. (see Supreme Court Decision 2010Do6910, Nov. 15, 2012).

2. The reasoning of the lower judgment and the record are as follows.