Robin plans to open a bar in a high-crime area.She had difficulty obtaining insurance for the business.She found an insurer willing to write the coverage,but only if Robin agreed to have a security alarm system in operation at all times when the business is closed.Robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a

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This is a warranty because it is a promise made by Robin to the insurer as a condition of obtaining the insurance coverage. A binder is a temporary agreement to provide insurance coverage until a formal policy is issued. A waiver is a waiver of a right or requirement, which does not apply in this scenario. A deductible is the amount of money that the insured must pay before the insurance coverage kicks in.

Robin Plans to Open a Bar in a High-Crime Area