Warranty

The insurer is entitled to rescind the policy — CIC Section 447 provides that the violation of a material warranty or other material provision of a policy, by either party, entitles the other party to rescind. A warranty is a promise or statement of fact that the policy requires to be true; warranties may be express or implied (Section 440). Rescission unwinds the contract as if it had never existed, subject to the materiality requirement.

CA-specific example

The insurer is entitled to rescind the contract — Section 338 gives the insurer the right to rescind when the insured intentionally and fraudulently omits information proving or tending to prove the falsity of a warranty. This is one of the insurer's statutory rescission rights, along with unintentional concealment (Section 331), false material representation (Section 359), and violation of a material warranty (Section 447). Fraudulent concealment goes to the heart of the contract and supports unwinding it entirely.

CA-specific example