Professional Documents
Culture Documents
1.) Express Warranty In case of promissory warranty refer only to future events
o Insured stipulates the certain facts relating to Provision employ the term warranty in general
the risk shall be true or certain acts relating to
the same subject shall be done
o It is only in marine insurance that Whether a statement made by the insured in the policy is a
the law provides for implied warranty depends upon the intention of the parties.
warranties.
In case of doubt Statement will be construed as
3.) Affirmative Warranty representation rather than a warranty especially if such
statement is contained in any instrument other that the policy
o Asserts the existence of a fact or condition at like an application which is collateral merely to the contract
the time it is made. of insurance
o Continuing if it is one that must be Parties must intent a statement to be warranty & it must be
satisfied during the entire coverage period of included as a part of the contract
insurance
Gratuitous answers written in the application, that is,
4.) Promissory Warranty answers NOT responsive to any questions asked NOT
warranties even though the policy makes a statement in the
o Insured stipulates that certain facts or application warranties
conditions pertaining to the risk shall exist or
that certain things with reference shall be
done or omitted.
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TITLE 7 - WARRANTIES
Warranties distinguished in the application o Case of Ang Giok Chip vs. Springfield Fire &
Mutual Insurance Co. - Whether a warranty
contained in a rider to the policy is null and
WARRANTIES REPRESENTATION void on the ground that the rider was NOT
signed by the insured & not referred to in the
policy as making a part of it.
Considered parts of the contract Collateral inducements to it
a.) Another instrument construed as excluding
Always written in the face of the Maybe written in a totally a rider
policy, actually or by reference disconnected paper or may be oral Rider attached to a policy is a part
of the contract to the same extent
& with like effect as if actually
Strictly complied Substantial truth
embodied
Falsity or non-fulfillment breach Falsity void on the ground of It need NOT be signed by the
of contract fraud insured nor referred to in the policy
as making a part of it.
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TITLE 7 - WARRANTIES
2.) Where statement in the nature of an opinion When insured barred by waiver or estoppel
o Statement in the policy which is from the very Breach of warranty operates to discharge the insurer from
nature of the subject matter of the inquiry can liability unless the insurer is liable because of waiver of the
ONLY be an expression of an opinion is NOT a warranty or an estoppel
warranty of its truthfulness.
Doctrines of waiver & warranty 2 devices which frequently
o If such statement is deemed a warranty is merely have been used to modify the harsh operation of the rules on
a limited warranty as to the honesty and good faith concealment & warranty
of the insured ~~ a warranty that the statement is
his honest opinion or judgement 1.) Omission to fulfill a warranty or condition will likewise be
excused where there is a waiver on the part of the insurer
Section 72 Waiver
1.) When loss occurs before the time for performance o Violation of the terms of a contract of insurance
entitles either party to terminate the contractual
2.) When performance becomes unlawful relations
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TITLE 7 - WARRANTIES
o Insured can sue for rescission for Such stipulation or condition has
breach of contract due to the refusal of been upheld as valid & as a
the insurer to grant a loan applied for warranty no other insurance exist
although this was expressly agreed
upon in the policy & he can recover the To constitute a violation The
full amount of the premiums paid by him other insurance must be upon the
up to the to the filing of the action same subject-matter, the same
interest therein and the same risk
2.) Rescission by the insurer
o Thus, fire policy insurance requires the A breach of warranty without fraud merely
exonerates an insurer from the time that it occurs,
insured to give notice of the existence of
or where it is broken in its inception, prevents the
other insurance policies over the same
policy from attaching to the risk.
property insured non-disclosure is a
violation of a material warranty which
entitles the insurer to rescind
o If not , the breach will NOT avoid the Fraud is not essential in order that the insurer may be
policy entitled to rescind a contract of insurance on the ground of
breach of warranty
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TITLE 7 - WARRANTIES
Insurers may impose whatever conditions they please upon o Thus, insurer who issues his policy covering a
their obligations as long as they are not contrary to law, certain store & its contents against loss or damage
morals, good customs, public order or public policy by fire may cut down the meaning of contents by
excepting money and securities & restrict the peril
1.) Condition precedent of fire by excepting fire caused by lightning
o Happening of some event or the performance of Exceptions distinguished from warranties and conditions
some act AFTER the terms of the contract have
been agreed upon, before the contract shall be Exceptions are easily distinguished from warranties and
binding upon the parties conditions
o Such as that the policy shall NOT take {page 236 example}
effect until the delivery & payment of the
first premium during the good health of Effects if breach on legal relations of parties
the applicant
1.) On binding force of contact
2.) Condition subsequent
o Occurrence of a breach or warranty or condition
o Pertains NOT to the attachment of the risk & the even though such breach be but temporary
inception of the policy BUT to the contract of renders the entire contract defeasible or voidable.
insurance after the risk has attached & during the
existence o Even though such breach may NOT
o Such condition requiring notice & proof have affected the risk or contributed to
of loss in case of loss upon an the loss in any way.
insurance against fire
Expected Peril such as vacancy
Warranties and Conditions distinguished in the insured house DOES
NOT in the least affect the binding
force of the contract
Warranty Condition
Loss happens DURING vacancy
falls outside the coverage of the
Does NOT suspend One WITHOUT the policy & insurer is NOT liable
or defeat the performance of which
operation of the the contract, No loss occurs House is
As to the effect contract although in form reoccupied contract relations of
executed by the the parties continue unchanged
But a breach affords parties & delivered
either the remedy DOES NOT spring
expressly provided in into life 2.) On liability where there is waiver
the contract or that
furnished by law Limitation to the o Insurer CANNOT, by a naked waiver, assume a
attachment of the risk non-existent duty