Definition - What does Waiver mean?
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.
Insuranceopedia explains Waiver
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.