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warranty

Question 1

In insurance terminology, a warranty is a promise something has happened or exists (affirmative warranty) or something will happen (promissory warranty). Give two examples of promissory and affirmative warranties. What difference does it make to an insured if false statement made by the insured is considered a warranty or a representation?

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Affirmative warranty can be described as a statement regarding a fact at the time of the signing of the contract. A promissory warranty can be defined as a statement about future facts that will continue to the true throughout the term or period of the policy. A false affirmative warranty makes insurance contract void at the inception.

Example of affirmative warranty:

At the time of signing up for car insurance, the ...

Solution Summary

In insurance terminology, a warranty is a promise something has happened or exists (affirmative warranty) or something will happen (promissory warranty). Give two examples of promissory and affirmative warranties. What difference does it make to an insured if false statement made by the insured is considered a warranty or a representation?

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