A contract provision permitting the insurer to defer granting a loan on the sole security of the policy for any other purpose than that of paying premiums on the policy for a stated interval of time.
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Whether or not it affects a claim on the policy the Insured must comply with all warranties in the policy. In the event of breach of warranty by the Insured, the Insurer is automatically, discharged from all liability from the date of the breach, but the Insurer remains liable for Insured losses occurring prior to that date.