What does a Waiver represent in insurance?

A waiver in the context of insurance signifies a voluntary relinquishment of a known right. This means that an individual or party intentionally chooses to give up a legal right or claim. In insurance, this concept often arises when an insurer or the insured decides not to enforce certain rights outlined in the policy or relevant laws.

For instance, if an insurer waives its right to deny a claim based on a specific requirement, it means the insurer has chosen to overlook that requirement for the sake of processing the claim. This practice is significant because waivers can impact the contractual responsibilities between parties, potentially altering the coverage or the claims process. Understanding waivers is crucial for both insurance professionals and policyholders as it affects rights and obligations within the insurance contract.