State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Which statement correctly distinguishes the legal effect of a warranty from that of a representation in an insurance contract?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A warranty is an assurance that facts are exactly as stated and becomes part of the contract; under California law a breach of a material warranty gives the insurer a defense (CIC Sections 440-447), and the strict, exact-truth standard applies. A representation is a statement made to induce the contract (CIC Sections 350-361) that need only be substantially true as to matters material to the risk; a false representation that is material allows rescission. The strictness of the warranty standard is the key contrast.
Why the other options are wrong
- B) This reverses the standards: warranties demand exact truth, while representations are judged on material substance.
- C) Both warranties and representations typically concern existing or past facts stated at application; neither is limited to future conduct.
- D) The standards differ materially: warranties are strict, representations are judged on materiality.
Memory hook
Warranty = word-for-word truth or the policy can fall. Representation = the big picture must be honest.