In insurance contracts, what must warranties represent?

Warranties in insurance contracts are legally binding guarantees made by the insured that certain facts or conditions are true and will remain true throughout the duration of the policy. When a warranty is included in an insurance contract, it represents a commitment that the insurer relies on when underwriting the policy. If a warranty is found to be untrue, even if the misrepresentation is minor or not material, it can lead to a denial of coverage or cancellation of the policy.

This is why warranties must represent statements that must be true; they are not mere probabilities or subjective opinions, but concrete assertions that carry significant weight in determining the validity and enforceability of the policy. In the context of insurance, the distinction is critical because it underscores the insurer's right to expect complete accuracy in the representations made by the insured.