(a) The policy must provide that all statements made by the insured will, in the absence of fraud, be deemed representations and not warranties. The policy may provide that statements made on behalf of the insured will also, in the absence of fraud, be deemed representations and not warranties.
(b) Policy applications sometimes contain agreements that call attention to some, or all, of the elements that must be proved in avoiding the policy for misrepresentation. Such agreements are acceptable, provided:
  (1) they do not attempt to burden the insured's representations with the legal consequences of warranties;
  (2) they do not attempt to require the insured to prove the nonexistence of grounds upon which the insurer could contest the policy; and
  (3) they do not attempt to permit the insurer to avoid liability on grounds less stringent than under Insurance Code §705.004, concerning Policy Provision: Misrepresentation in Policy Application, or other applicable law.

Source Note: The provisions of this §4.605 adopted to be effective January 1, 1976; amended to be effective September 20, 1982, 7 TexReg 3244; amended to be effective May 11, 2022, 47 TexReg 2758; transferred effective September 1, 2023, as published in the July 28, 2023, issue of the Texas Register, 48 TexReg 4127; amended to be effective January 24, 2024, 49 TexReg 250