Which term describes a policy provision pledging that a condition will exist at some point in the future?

• A. Warranty
• B. Representation
• C. Indemnity
• D. Waiver

Answer: (A)

A warranty is a promise within an insurance contract that a specific condition will exist or remain true for the life of the policy, or at a specified time in the future. The scenario describes pledging that a condition will exist at some point in the future, which aligns exactly with how a warranty operates. If such a warranty is breached, the insurer may have grounds to deny a claim or void the contract, depending on the policy language and materiality of the misstatement.

Representations, by contrast, are statements of fact made to obtain coverage that are assumed true to the best knowledge of the applicant but are not guarantees about future existence. Indemnity refers to the insurer’s promise to reimburse losses incurred, not to a forward-looking condition. Waiver means voluntarily relinquishing a known right. These options don’t describe a future-promise about a condition in the way a warranty does.