A commercial property policy includes a warranty that the insured will maintain a functioning central-station burglar alarm throughout the policy period. The insured allows the alarm contract to lapse mid-term, and a theft occurs while the alarm is inoperative. How does this warranty operate?

Why this is the answer

An affirmative warranty is a statement of a fact that must be true at policy inception — for example, 'the building has a sprinkler system installed today.' Breach voids coverage from inception. A promissory (continuing) warranty is a promise that a state of facts will remain true throughout the policy period — for example, 'the insured will maintain the alarm system in working order.' Breach suspends coverage during the period of non-compliance, and coverage resumes when the insured restores compliance. The alarm-maintenance warranty here is plainly promissory.