General Insurance
How does a warranty differ from a representation in insurance law?
Answer and explanation
Answer: B. A warranty is an absolute undertaking whose breach can void the contract, while a representation need only be substantially true when made. Statements on a life insurance application are generally treated as representations rather than warranties.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, warranties
More general insurance questions
- An insurer lets a former agent keep using its stationery and signs, and a client deals with him believing he still represents it. Which authority is in play?
- An insurer transfers part of the risk it has accepted to another insurer. What is that arrangement?
- An owner wishes to transfer a life policy to another person. Why does the personal contract character of insurance matter here?
- How do stock and mutual insurance companies differ in ownership and distributions?
- How does the principle of indemnity apply differently to life insurance than to property insurance?
- In the law of agency as it applies to insurance, who is the principal?
621 New York questions like this one.
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