N.Y. Insurance Law § 3106: Warranty defined; effect of breach

§ 3106. Warranty defined; effect of breach. (a) In this section

"warranty" means any provision of an insurance contract which has the

effect of requiring, as a condition precedent of the taking effect of

such contract or as a condition precedent of the insurer's liability

thereunder, the existence of a fact which tends to diminish, or the

non-existence of a fact which tends to increase, the risk of the

occurrence of any loss, damage, or injury within the coverage of the

contract. The term "occurrence of loss, damage, or injury" includes the

occurrence of death, disability, injury, or any other contingency

insured against, and the term "risk" includes both physical and moral

hazards.

(b) A breach of warranty shall not avoid an insurance contract or

defeat recovery thereunder unless such breach materially increases the

risk of loss, damage or injury within the coverage of the contract. If

the insurance contract specified two or more distinct kinds of loss,

damage or injury which are within its coverage, a breach of warranty

shall not avoid such contract or defeat recovery thereunder with respect

to any kind or kinds of loss, damage or injury other than the kind or

kinds to which such warranty relates and the risk of which is materially

increased by the breach of such warranty.

(c) This section shall not affect the express or implied warranties

under a contract of marine insurance in respect to, appertaining to or

in connection with any and all risks or perils of navigation, transit,

or transportation, including war risks, on, over or under any seas or

inland waters, nor shall it affect any provision in an insurance

contract requiring notice, proof or other conduct of the insured after

the occurrence of loss, damage or injury.