What are Warranties in the insurance application?

What are Warranties in the insurance application?

• A. Statements on the application guaranteed to be true.
• B. Exclusions in the policy.
• C. Statements made on the application that are guaranteed to be true.
• D. Representations that can be true or false.

Answer: (C)

Warranties are statements made on the application that are guaranteed to be true. The insurer relies on these promises when underwriting the policy, so if a warranty turns out to be false, the insurer may void the contract or deny a claim. This makes warranties stricter than ordinary representations, which are statements the applicant believes to be true but aren’t guaranteed. Exclusions are simply items not covered by the policy, not statements about truthfulness. So the best description is that warranties are statements made on the application that are guaranteed to be true.

Warranties are statements made on the application that are guaranteed to be true. The insurer relies on these promises when underwriting the policy, so if a warranty turns out to be false, the insurer may void the contract or deny a claim. This makes warranties stricter than ordinary representations, which are statements the applicant believes to be true but aren’t guaranteed. Exclusions are simply items not covered by the policy, not statements about truthfulness. So the best description is that warranties are statements made on the application that are guaranteed to be true.