A waiver refers to an intentional and voluntary act of relinquishing or abandoning a right, privilege, claim, or legal benefit, often in a written statement. In terms of insurance, a waiver has many applications, such as provisions waiving coinsurance in property insurance or premiums in life insurance.
In essence, a waiver functions as a way to remove a real or potential liability for one party in the agreement. Often, waivers in insurance contracts may entail specific conditions or stipulations for the waiver to go into effect. For example, a life insurance policy with a waiver of premium protects the insured from the possibility of losing coverage as a result of the inability to pay due to a serious illness or disability. However, for the premium to be waived, the policyholder and the situation must meet certain conditions, such as the disability lasting 6 months or more and the policyholder being of a certain age and health at the time of the agreement, for instance.
Share this Term
Stay informed with Insuranceopedia!
The world of insurance can be complicated. Subscribe to the Insuranceopedia newsletter and stay in the know! Access expert content, industry term definitions and answers to your questions from knowledgeable insurance insiders. Arm yourself with what you need to know to keep your assets and your family safe.
Latest Articles
