What is the difference between a local and global warranty?

What is the difference between a warranty and a policy condition?

• what is the difference between a warranty and a policy condition?

• Answer:

  A warranty in an insurance policy is a promise by the insured that statements affecting the validity of the contract are true. Warranties in insurance contracts can be divided into two types: affirmative or promissory. An affirmative warranty is a statement regarding a fact at the time the contract was made. A promissory warranty is a statement about future facts or about facts that will continue to be true throughout the term of the policy. An untruthful affirmative warranty makes an insurance contract void at its inception. If a promissory warranty becomes true, the insurer may cancel coverage at such time as the warranty becomes untrue Policy conditions are provisions, rules of conduct, duties and obligations required for coverage. If policy conditions are not met, the insurer can deny the claim. Common policy conditions typically relate to cancellation, assignment of the policy, changes in coverage, audits, inspections, premiums, the requirement to file a proof of loss with the company, to protect property after a loss, to cooperate during the company’s investigation or defense of a liability lawsuit, limitations and procedures regarding suing the insurer and .