A modern representation and warranty insurance (“RWI”) policy contains a number of ongoing covenants and obligations of the insured with respect to the making and pursuit of claims under the policy.
All or almost all of those covenants and obligations are made subject to an explicit requirement in the RWI policy that there will be a forfeiture or limitation of coverage due to an insured’s noncompliance with such covenants and obligations only if and to the extent that the insurer has been actually prejudiced by such noncompliance, with the burden of proof on the insurer.
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©2026. Published in Business Law Today, January 20, 2026, by the American Bar Association. Reproduced with permission. All rights reserved. This information or any portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association or the copyright holder.