If an Express Warranty Is Written into a Contract of Insurance

When it comes to insurance policies, there are two types of warranties: express and implied. An express warranty is a written guarantee that is explicitly stated in the contract of insurance. But what exactly does it mean if an express warranty is written into a contract of insurance?

First, let`s define what an express warranty is. An express warranty is a promise made by the insurer to the policyholder that certain conditions will be met. This promise can relate to any aspect of the policy, including the coverage provided, the premium amount, and the duration of the policy.

If an express warranty is written into a contract of insurance, it means that the insurer is legally bound to fulfill the promise made in the warranty. This can be beneficial for the policyholder, as it provides a level of assurance that the insurer will meet their obligations under the policy.

However, it`s important to note that if the policyholder fails to meet the conditions set out in the express warranty, the insurer may not be obliged to pay out on a claim. For example, if the policyholder takes out a life insurance policy and the express warranty requires them to disclose any pre-existing medical conditions, but they fail to do so, the insurer may not be obliged to pay out if the policyholder dies as a result of that condition.

It`s also important to note that an express warranty is different from an implied warranty. Implied warranties are not explicitly stated in the policy, but are instead assumed to be present based on the circumstances surrounding the policy. For example, there is an implied warranty that the policyholder has an insurable interest in the subject matter of the policy.

In conclusion, if an express warranty is written into a contract of insurance, it provides a level of assurance that the insurer will fulfill their obligations under the policy. However, it`s important for policyholders to understand the conditions set out in the warranty and to meet those conditions in order to ensure that the policy remains valid. As a professional, it`s important to communicate these concepts clearly and effectively in any articles or content related to insurance policies.