ABSTRACT
The term “warranty”, in use in marine policies by at the latest the end of the 17th century, referred in its origins to three quite separate concepts. First, a warranty could be used to secure a promise as to the truth of statements made to the underwriters by the assured (or, in the overwhelming majority of cases, his broker) in the course of the presentation of the risk. The warranty could relate to the accuracy of a statement of fact or of the assured’s intentions or opinions. Warranties of this type were thought necessary in the light of the courts’ view that a false statement made in pre-contractual negotiations conferred upon the underwriters the right to treat the policy as a nullity only if it was in some way material to the risk being run. By contrast, a warranty removed the need for any investigation into materiality: all that mattered was whether or not the statement was true, and the courts regularly urged underwriters to use warranties if they wished to avoid the inconvenience of having to prove materiality.
