What is a warranty quizlet insurance?
A warranty is a fundamental term of the insurance contract. It is effectively a promise made. by the insured, and must be strictly observed.
What are the 4 types of warranties?
Types Of Warranty and their meaning
- Types of Warranty.
- 1) Implied Warranty. a) Warranty of Merchantability. b) Warranty of Fitness For A Particular Purpose. c) Warranty of Title. …
- 2) Extended Warranty.
- Guaranteed Ability To Repair.
- More Comprehensive Coverage.
- Peace of Mind.
- Increased Resale Value.
What is breach of warranty in insurance?
Definition. Breach of Warranty Clause — a lienholder’s or lessor’s interest endorsement that causes the policy to continue to protect the financial interest of a lienholder or lessor even when the insured breaches a condition, thereby voiding coverage.
What does warranty mean?
A warranty is a type of guarantee that a manufacturer or similar party makes regarding the condition of its product. It also refers to the terms and situations in which repairs or exchanges will be made in the event that the product does not function as originally described or intended.
Which of the following is defined as an absolutely true statement upon which the validity of the insurance policy depends?
WARRANTIES – An absolutely true statement upon which the validity of the insurance policy depends. When breached, it can be grounds for voiding the policy or returning the premium.
What is full warranty?
full warranty – Legal Definition
n. Contract law: as opposed to a limited warranty, a warranty that completely covers the repair or replacement of any defect in a consumer product.
What are the two types of warranties?
The two main types are express and implied warranties. An express warranty is one that is clearly stated (or “expressed”) either verbally or in writing, while an implied warranty automatically covers most consumer goods valued over a certain amount, but only provides a base level of protection for consumers.
What is difference between guarantee and warranty?
Guarantee. A warranty is a guarantee of the integrity of a product and of the maker’s responsibility for it. … In a sense, guarantee is the more general term and warranty is the more specific (that is, written and legal) term.
What are representations in insurance?
A statement made by an applicant for insurance, before the contract is made, which affects the willingness of the insurer to accept the risk.
What does concealment mean in insurance?
Definition: Concealment is the act of hiding or not putting forward any relevant fact in front of the insurer that need to be revealed. An applicant commits this fraudulent act intentionally or unintentionally that may lead to loss to the insurer.
Is breach of contract covered under a CGL policy?
There is a persistent tendency for insurers to summarily conclude that the CGL policy never provides coverage for breach of contract claims and, consequently, deny any claim in which liability is associated with a contract.
How does warranty work?
With a full warranty, a company guarantees to repair or replace a faulty product during the warranty period. If the product is damaged or defective, companies offering a full warranty must repair or replace it within a reasonable time. … A limited warranty might cover only specific parts or certain types of defects.
What are the basic terms of a warranty?
The Manufacturer’s Promise
Essentially, an auto warranty is a promise given by the manufacturer or dealer to cover various defects and repairs over an allotted amount of time and/or certain amount of mileage on the car. In general, a basic warranty will last about three years or 36,000 miles.