What does a waiver in insurance context mean?

In the context of insurance, a waiver refers to the voluntary surrender of a right or privilege. This means that an individual or party, such as an insurance company or policyholder, gives up a legal right that they would otherwise possess. For example, a policyholder might waive their right to a lawsuit as part of a settlement, or an insurer might waive certain policy provisions under specific circumstances.

Recognizing the implications of waiving rights is crucial in insurance matters, as it can affect coverage and obligations. By understanding waivers, policyholders can make informed decisions regarding their rights and entitlements under a policy.