An insurance company's voluntary refusal to enforce a contract's provision is called what?

• A. Waiver
• B. Concealment
• C. Warranty
• D. Assignment

Answer: (A)

Waiver is the voluntary relinquishment of a known right. In insurance, this means the insurer chooses not to enforce a policy provision. For example, if the insurer accepts a late premium or pays a claim despite not meeting a specific condition, that can be treated as waiving that provision. Once a waiver occurs, the insurer may not later rely on enforcing that provision against the same claim. This is different from concealment (hiding information), warranty (a guaranteed truth that can void coverage if broken), or assignment (transfer of rights to another party).