What does the term "estoppel" signify in insurance agreements?

The term "estoppel" in insurance agreements refers to the principle that prevents a party from arguing something contrary to a claim that has already been established by their previous conduct or statements. In the context of insurance, it signifies the idea that if one party has acted in a manner that leads the other party to believe certain facts are true, that party cannot later claim otherwise if it would harm the reliance of the other party on those established facts.

Choosing the option that states it signifies the waiver of rights related to consequences reflects the fundamental nature of estoppel. It implies that if a policyholder behaves in a manner that suggests certain rights are being waived or accepted, they cannot later claim those rights in opposition to what their actions indicated. This concept serves to uphold principles of fairness and justice by preventing inconsistent behavior that could mislead others relying on that behavior.

In contrast, other options do not accurately capture the essence of estoppel. The first option implies that the policyholder is gaining additional rights, which doesn't align with the principle of estoppel. The third option about restricting the transfer of ownership relates more to policy conditions than the legal implications of estoppel. The fourth option regarding insurable interest is a fundamental requirement of insurance contracts but does not pertain to the