What is defined as a guaranteed truth in the application process for insurance?

Warranties are defined as guaranteed truths in the application process for insurance. In the context of an insurance contract, a warranty is a specific promise or affirmation made by the insured regarding a material fact. This promise must be true at the time of the contract and throughout its duration. If a warranty is found to be false, it can give the insurer the right to deny a claim or cancel the policy, as it is considered essential for the risk assessment.

In contrast, while waivers refer to the voluntary relinquishment of a known right, estoppel prevents one party from arguing something contrary to a claim that another party has relied upon, and retention typically refers to an insurer's acceptance of a portion of risk rather than a guaranteed truth. Each of these terms plays different roles in insurance contracts, but only warranties directly define guaranteed truths in the application process.