Warranties and Representations Copy

Information given in the context of insurance policies may be classified according to the level of certainty involved:

  • A warranty is a statement that is supposed to be absolutely true and on which the validity of the insurance policy rests; for example, the insured states that his name is Billy Bob Brown and that he is the only driver of his car. Billy Bob should know his name and who drives his car. This is important information for the insurer to know.
  • A representation is an answer given to the best of one’s knowledge; for example, when asked how many traffic violations Sandy has had in the past five years, she states that she had a speeding ticket awhile ago, but does not think it was within the past five years. Sandy is answering the question to the best of her ability, but her answer could be wrong.