QuestionAugust 9, 2025

Which of the following is a statement that is guaranteed to be true, and if untrue may breach an insurance contract? A. Representation B. Concealment C. Warranty D. Indemnity

Which of the following is a statement that is guaranteed to be true, and if untrue may breach an insurance contract? A. Representation B. Concealment C. Warranty D. Indemnity
Which of the following is a statement that is
guaranteed to be true, and if untrue may breach an
insurance contract?
A. Representation
B. Concealment
C. Warranty
D. Indemnity

Solution
4.4(177 votes)

Answer

C. Warranty Explanation 1. Identify the definition of each term Representation: A statement made by the insured during the application process, not guaranteed to be true. Concealment: Intentional withholding of information, which can void a contract if material. Warranty: A promise or guarantee in a contract that must be true; if untrue, it may breach the contract. Indemnity: Compensation for loss or damage, not related to statements. 2. Determine which term fits the description Warranty is the term that describes a statement guaranteed to be true and can breach the contract if untrue.

Explanation

1. Identify the definition of each term<br /> Representation: A statement made by the insured during the application process, not guaranteed to be true.<br /> Concealment: Intentional withholding of information, which can void a contract if material.<br /> Warranty: A promise or guarantee in a contract that must be true; if untrue, it may breach the contract.<br /> Indemnity: Compensation for loss or damage, not related to statements.<br /><br />2. Determine which term fits the description<br /> Warranty is the term that describes a statement guaranteed to be true and can breach the contract if untrue.
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