Warranties in Insurance
What constitutes a warranty – A warranty is either express or implied. It may relate to the past, the present, the future, or to any or all of these. To create a warranty, there is no particular form of words that are necessary to be used.
What constitutes an express warranty – An express warranty is a statement in a policy “of a matter relating to the person or thing insured, or to the risk, as fact.” For instance, a statement in a policy that imparts what is intended to do or not to do a thing which materially affects the risk is a warranty that such act or omission is to take place.
Express warranty to be stated in policy itself or in another instrument signed by insured and referred to in policy as making part of it – Without prejudice to those required to be stated in the policy, every express warranty, which was made at/before the execution of a policy, is required to 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.
Omission to fulfill warranty does not avoid policy – The omission to fulfill the warranty relating to the future before the time arrives for the performance of such warranty does not avoid the policy in these cases: (a) when loss insured against happens, or (b) performance becomes unlawful at the place of the contract, or impossible.
Rescission in case of material warranty – Either party is entitled to rescission in case the other violates a material warranty or other material provision of a policy.
Policy may declare violation of specified provisions results in nullity of insurance contract – The insurer may declare in the policy that a violation of specified provisions thereof results in the contract being void; otherwise, the breach of an immaterial provision does not nullify the policy.
Breach of warranty without fraud – The breach of warranty without
fraud results in the following: (a) it merely exonerates an insurer from the
time that it occurs; or (b) where it is broken in its inception, prevents the
policy from attaching to the risk.
 P.D. 612 (Insurance Code), as amended, Section 67.
 Ibid. Section 68.
 Ibid. Section 69.
 Ibid. Section 71.
 Ibid. Section 72.
 Ibid. Section 70.
 Ibid. Section 73.
 Ibid. Section 74.
 Ibid. Section 75.
 Ibid. Section 76.