Which of the following statements about life insurance warranty is true?

A life insurance warranty is a statement or promise made by the policyholder that certain conditions are true and will remain true throughout the life of the policy. If a warranty is found to be untrue, it can result in a breach of contract, meaning the insurance company has the right to deny a claim or void the policy. This principle reinforces the significance of accurate and truthful information when applying for insurance, as the statements made are not merely representations of intent but rather obligations that must be met for the contract to remain valid.

In contrast, mere good faith representations do not carry the same binding effect as a warranty, and writing is not always necessary for a warranty to be enforceable, depending on the specific jurisdiction and type of insurance. Additionally, warranties do not guarantee that all future claims will be honored; rather, they impose a duty to comply with the conditions set out in the warranty. Understanding the implications of warranties in life insurance underscores the need for accuracy and truthfulness in the disclosures made to the insurer.