Warranties in Insurance Contracts

question 70

Multiple Choice

Warranties in insurance contracts:

• A) are of great importance.
• B) may be expressly included in the contract, be clearly incorporated by reference, or be implied.
• C) may be used to avoid liability in all states, whether or not the breach of warranty is material.
• D) are becoming increasingly easy to use as a basis for an insurer to avoid liability on a policy when an insured breaches.

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Definitions:

Exclusive Dealing

A contractual agreement where one party grants another party the sole rights to buy, sell, or distribute goods or services in a specified market or territory.

Geographical Areas

Specific locations or regions within a broader space, defined by natural or artificial boundaries.

Resale Restriction

Rules or conditions imposed on the resale of a product, often used by manufacturers to control the distribution or price of their products in the secondary market.

Geographical Areas

Specific locations or regions defined by natural or artificial boundaries.