When is the insurer entitled to void the policy for breach of a warranty?
The Federal Marine Insurance Act defines a warranty as a promissory warranty by which the insured (a) undertakes that some particular thing will or will not be done or that some condition will be fulfilled; or (b) affirms or negates the existence of particular facts. The identifying characteristic of a true warranty is the consequence that flows from a breach of the warranty, namely that the insurer is discharged from liability. This is dealt with in s. 39 of the Act: (1) Subject to this section, a warranty must be exactly complied with, whether or not it is material to the risk. (2) Subject to any express provision in the marine policy or any waiver by the insurer, where a warranty is not exactly complied with, the breach of the warranty discharges the insurer from liability for any loss occurring on or after the date of the breach, but does not affect any liability incurred by the insurer before that date. These provisions would seem to entitle the insurer to void the policy for any
