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Types of Warranties in Insurance Policies  

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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 \\xa7 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.

The violation of an express warranty will void a policy in its entirety.  [ See Aguirre v. Citizens Cas. Co. of N.Y., 441 F.2d 141 (5th Cir.  1971); Saskatchewan Gov\\u2019t Ins. Office v. Spot Pack, Inc., 242 F.2d 385,  388 (5th Cir.1957).] In the British case, A C Ward & Sons Ltd v.  Catlin (Five) Ltd & Ors [2009] Commercial Court, the insurers  attempted to avoid coverage on the failure of an alarm system, warranted  by the insured to work. The court concluded that the warranty was not  limited to the particular \\u201cprotections\\u201d specified in the proposal form,  nor was the Alarm Warranty confined to such alarm systems as might have  been identified in the schedule. 

As a matter of commercial common sense, the warranties referred to  whatever protections or alarms actually existed, whether identified in  the policy documentation or not. As to knowledge, the court adopted the  view that a breach of warranty could occur only in the event of a defect  of which the insured was, or should reasonably have been, aware, and  which it had then failed to remedy promptly. However, even though the  alarm warranty was not effective the insured also promised that theft  coverage for cigarettes & tobacco in a warehouse was not operative  outside of business hours unless the stock was kept within the special  secure store on the ground floor. Since they were not on the first floor  the insured was not allowed to recover.

Affirmative Warranty  An affirmative warranty asserts an existing fact or condition which  appears on the face of the policy or \\u201cis attached thereto and made a  part thereof.\\u201d It is limited in time to the moment of the application.

ZALMA OPINION 

 Fulfillment of insurance warranties by those insured or by the insurer  are important to every insurance claim investigation. It is important  that every claims person or insurance coverage lawyer understand the  effect of warranties and establish that every warranty made was  fulfilled at the time of inception or at the time of the loss.