A Video Explaining Types of Warranties

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Express Warranty

Express warranties relate to the present or past existence of particular facts relating to the risk upon the truth of which, the validity of the contract depends. [California Insurance Code § 440.]

A statement of fact becomes an express warranty when the insurer and the insured comply with California Insurance Code section 443. Section 443 provides:

Every express warranty made at or before the execution of a policy shall be contained in the policy itself, or in another instrument signed by the insured and referred to in the policy, as making a part of it.

Some examples of express warranties include the following statements:

   “My business is a partnership.”

   “My building is reinforced brick.”

   “I have never been canceled by any insurer.”

   “I am 45 years old and have never smoked cigarettes.”

Admiralty law requires the strict construction of express warranties in marine insurance contracts; breach of the express warranty by the insured releases the insurance company from liability. [Lexington Ins. Co. v. Cooke’s Seafood, 835 F.2d 1364, 1367-38 (11th Cir. 1988) that affirmed a judgment in favor of the insurer based on breach of a navigational warranty).

Affirmative Warranty

An affirmative warranty asserts an existing fact or condition which appears on the face of the policy or “is attached thereto and made a part thereof.” It is limited in time to the moment of the application. T

An affirmative warranty is one which asserts the existence of a fact at the time the policy is entered into, and appears on the face of said policy, or is attached thereto and made a part thereof. [Hicks v. Mennonite Mut. Ins. Co., 2011 Ohio 499 (Ohio App. 2011)]

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