A warranty that is explicitly written into the policy or appears on the application is known as a(n):
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under California Insurance Code Section 440, a warranty is either express or implied. An express warranty is one that is explicitly stated — written into the policy or set out on the application — making the statement a condition of the contract. An implied warranty is one inferred from circumstances or conduct rather than stated in words. Because express warranties are written into the contract, a false express warranty can be a basis for rescission if it is material. The distinction matters in practice: an express warranty must be honored literally as written, while an implied warranty depends on what the circumstances reasonably suggest the parties intended.
Why the other options are wrong
- B) An implied warranty is inferred from conduct or circumstances rather than explicitly written; because the question describes a warranty written into the policy, it is not an implied warranty.
- C) Aleatory describes a contract whose performance depends on an uncertain event, with unequal values exchanged; it is a characteristic of insurance contracts, not a type of warranty. Aleatory is a classification of contracts, not a category of warranties, so it cannot describe the type of warranty at issue here.
- D) A representation is a statement of fact that induces the insurer to accept the risk; unlike a warranty, it is not necessarily made a stated condition of the policy and is judged by materiality.
Memory hook
Express = spelled out in the contract. Implied = read between the lines.