What guarantees that the statements supplied by an insurance applicant are true?

• A. Warranty
• B. Representations
• C. Covenant
• D. Indemnity

Answer: (A)

Warranty is a statement guaranteed to be true and made a condition of the insurance contract. When a warranty clause is present, the insurer relies on the applicant’s statements as an absolute truth; if any warranty is broken, the policy can be voided or a claim denied because the contract rests on that guaranteed truth.

Representations are statements believed to be true but not guaranteed. If a representation turns out false and it’s material, the insurer may have grounds to void or deny coverage, but it isn’t a guaranteed truth embedded in the contract like a warranty.

Covenant is a broader contractual promise, not specifically about the truth of the applicant’s statements. Indemnity is about compensating for losses, not about guaranteeing the accuracy of application information.

So, the statement that guarantees the truth of what the applicant provides is a warranty.