A policy condition that guarantees a fact is called a ...

• A. Warranty
• B. Misrepresentation
• C. Concealment
• D. Proximate Cause

Answer: (A)

A warranty is a promise within the policy that a certain fact is true or that a condition will be maintained. It’s a guarantee tied to the contract itself, so if the insured breaches that guarantee, the insurer can rely on that breach to affect or void coverage, regardless of whether the loss was directly caused by the breach. This distinguishes warranties from other terms like misrepresentation (a false statement used to obtain the policy), concealment (deliberate withholding of a material fact), or proximate cause (the actual primary cause of the loss). So a policy condition that guarantees a fact fits the definition of a warranty.