What Is Waiver?
A voluntary relinquishment of a known right or claim in an insurance policy. An insurer may waive enforcement of a policy condition, but this must typically be documented in writing to be enforceable.
Waiver across 4 exams
Waiver appears on the following exams. Each defines it in the context candidates are tested on:
- Property & Casualty
- A voluntary relinquishment of a known right or claim in an insurance policy. An insurer may waive enforcement of a policy condition, but this must typically be documented in writing to be enforceable.
- All-Lines Adjuster
- The intentional relinquishment or non-enforcement of a known policy condition or right by the insurance company, usually communicated through action or conduct. A waiver is binding and estops the insurer from later enforcing the condition. Adjusters must be careful not to inadvertently waive policy requirements.
- Public Adjuster
- The voluntary and intentional relinquishment of a known right or requirement, which can occur when an insurer fails to enforce policy terms (such as timely notice requirements) or fails to reserve rights before accepting payment. An insurer's waiver of one requirement does not waive the requirement for future claims.
- Limited Lines
- A voluntary surrender of a known right by the insured or insurance company, typically documented in writing. In insurance, a waiver can apply to policy conditions, requirements, or coverage limitations.