ABSTRACT
Most of the conditions of cover in liability policies can be classifi ed as being one of two kinds, procedural conditions (below (4)) and warranties. Warranties, like exclusions (above 10), limit the scope of the cover, the scope of the risk assumed by the insurer. However, exclusions are limited in time or in respect of a certain kind of liability, and for other times or other kinds of liability the policy remains in force. For example, if a claim is brought against the insured in the United States, cover may well be excluded while the insured is in the United States; but if a similar claim is brought later against the insured in the United Kingdom, the policy remains in force in the United Kingdom and may well apply. In contrast, a warranty once broken terminates cover automatically and forever from the time of breach. 739
739. Bank of Nova Scotia v Hellenic Mutual War Risks Assn (Bermuda) Ltd, The Good Luck [1992] 1 AC 233. Termination of cover is also what distinguishes breach of an insurance warranty from breach of a warranty in general contract law, which does not have the effect of terminating the contract in question: Anson, pp. 143 ff and Treitel 18-039 ff.
