Definition of "Waiver"

RJ  Perez real estate agent
RJ Perez, Real Estate Agent Halo Group Realty

Relinquishment of a legal right to act. For example, an insured relies on statements of an agent of an insurance company concerning coverages under an insurance policy. Agents by their actions may have waived certain provisions the insurance company has written in the insurance policy, with the company's authority. Another example would be the provision in the homeowners insurance policy that suspends coverage if a hazard is increased by the actions of an insured. An insured who stores explosives near the family home notifies the insurance company; the company grants permission to do so, thereby waiving its defense of the increase in hazard clause.

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