Warranty versus Representation

a.
b.
c.
d.
e.
f.
g.

h.

i.

j.

Warranty is part of an insurance contract

a. Mere Collateral inducement
Always written
b. Maybe written or oral
Conclusively presumed material
c. Insurer must prove that representation is material
Must strictly complied with
d. Requires merely substantial truth
Made by the insured
e. Made by the insurer or insured
May relate to the past, the present, the future,
f. May be made at the time of, or before the issuance of the
policy
or to any or to all these.
Every express warranty, made at or before the
g. Representations as to future conduct or events or as to
other things not
execution of a policy, must be contained in the
susceptible of present, actual knowledge, amount only
to statements of
policy itself, or in another instrument signed by
intention, opinion or belief
the insured and referred to in the policy as making
a part of it
When, before the time arrives for the performance
h. May be altered or withdrawn before the insurance
is effected, but not
of a warranty relating to the future, a loss insured
afterwards
against happens, or performance becomes unlawful
at the place of the contract, or impossible, the
omission to fulfil the warranty does not avoid the
policy
Violation of material warranty, or other material
i. A representation is deemed false when the facts
fail to correspond with
provision of the policy, on the part of either party
its assertions or stipulations
thereto, entitles the other to rescind
Materiality is not necessary in the breach of
j. If a representation is false in a material point, whether
affirmative or
warranty when so provided in the policy for without
promissory, the injured party is entitled to rescind the
contract from
such provision the breach of an immaterial provision
the time when the representation becomes false. The
right to rescind
does not avoid the policy
granted by this Code to the insurer is waived by the acceptance
of premium payments despite knowledge of the ground for
rescission

k. A breach of warranty without fraud, merely

k. If the insurer has the right to rescind (as when
there is concealment or
exonerates an insurer from the time that it occurs,
false representation), this right must be exercised
previous to the
or where it is broken in its inception, prevents the
commencement of the action upon the contract but
this rule does not
policy from attaching to the risk
apply to contract void ab initio as when there exists no
insurable interest.
Thus, even if the loss or death had already occurred, the
insurer, before the insured and the heirs shall commence an
action to collect, may still rescind the
Insurance contract.