What Does Implied Warranty Mean?
Implied warranty is an unexpressed confidence that a product or a service meets the basic standards of utility or performance. In terms of insurance, it is assumed that the insurer will provide coverage to the insured during the time or upon a circumstance specified in the policy.
Insuranceopedia Explains Implied Warranty
The basic assumption that can be made about insurance is that if the insured has paid the premiums, the insurer will provide him with coverage. Insurance policies are often packaged with intricate payment and coverage schemes (including clauses and exclusions) that might be overlooked, misinterpreted, or misunderstood. So, it is advised that due care and due diligence be performed where insurance transactions are concerned so that parties involved have sufficient understanding of the terms of the policy (the insured) and know the liabilities (the insurer).