What is a "waiver" in insurance terms?

In insurance terms, a "waiver" refers to a voluntary relinquishment of a known right or privilege. This means that an individual or party chooses to forgo a right that they would normally be entitled to. For example, an insured might waive their right to renew a policy under certain conditions or choose to waive certain coverage options in exchange for a reduced premium. This concept is important in insurance contracts, as it can impact the terms of coverage and the obligations of the insurer and the insured.

Understanding the nature of a waiver is crucial in navigating insurance agreements, as it delineates what rights are retained and what might be forfeited. The other options relate to different aspects of insurance but do not accurately define a waiver. A request for additional coverage, for instance, involves seeking more protection rather than giving up something. A formal appeal for a claim denial is a process that disputes a decision made by an insurer, while an increase in policy premiums pertains to the cost of insurance rather than a relinquishment of rights.