3.01 In the late nineteenth and early twentieth centuries an underwriter who insured risks in which he was not an expert would refer to other policies that had already been taken out on the same subject matter and against the same risk. These contracts contained a typical clause worded as “warranted to be on the same rate, terms and identical interest of… Insurance Company.” Such clauses were interpreted by the courts as conditions precedent to the liability of the underwriters that the terms of the later insurance contract were identical to the earlier policy referred to.1 As a result, disparities between the policies such as premium differences,2 or valuation of the policy,3 were held to be breaches of conditions precedent that relieved the insurers from liability.4