What Is Estoppel?
A legal principle preventing a party from contradicting its own previous words or actions; in insurance, it bars an insurer from denying coverage if they previously stated coverage existed through their actions or agents. This is tested because it's a source of coverage despite policy language.
Estoppel across 2 exams
Estoppel appears on the following exams. Each defines it in the context candidates are tested on:
- Personal Lines
- A legal principle preventing a party from contradicting its own previous words or actions; in insurance, it bars an insurer from denying coverage if they previously stated coverage existed through their actions or agents. This is tested because it's a source of coverage despite policy language.
- Public Adjuster
- A legal principle preventing one party from denying a previous statement or action if another party has relied upon that statement or action to their detriment. In claims work, estoppel may prevent an insurer from denying coverage if they have led the policyholder to believe coverage exists.