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      Question

      What is the difference between a "condition" and a

      "warranty" in an insurance policy?
      A Breach of a condition may void the policy, while breach of a warranty may only give the insurer the right to avoid the contract. Correct Answer Incorrect Answer
      B Conditions are always express, while warranties are always implied. Correct Answer Incorrect Answer
      C Conditions relate to the insured's actions, while warranties relate to the insurer's obligations. Correct Answer Incorrect Answer
      D Conditions are more important than warranties in determining coverage Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Breach of a condition can have more serious consequences than breach of a warranty. Breach of a condition can make the entire policy void, while breach of a warranty may only give the insurer the right to avoid the contract or deny a claim for the specific loss related to the breached warranty.

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