§ 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.