Multiple choice

Which of the given statements is correct with regards to a warranty?

  1. A warranty is a condition which is implied without being stated in the policy.

  2. A warranty is a condition expressly stated in the policy.

  3. A warranty is a condition expressly stated in the policy and is communicated to the insured separately not as part of the policy document.

  4. If a warranty is breached, the claim can still be paid even if it is not material to the risk.

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Correct Answer: A warranty is a condition which is implied without being stated in the policy.