In insurance terminology, a warranty is a promise something has happened or exists (affirmative warranty) or something will happen (promissory warranty). Give two examples of promissory and affirmative warranties. What difference does it make to an insured if a false statement made by the insured is considered a warranty or a representation?
The insured’s duties after a loss are usually extensive. Please describe some of the duties of the insured after a loss occurs. What can happen if the insured fails to perform these duties? Explain your answer.
Textbook Reference: Dorfman, M. S. (2008). Introduction to risk management and insurance (9th ed.). Upper Saddle
River, NJ: Prentice Hall.
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