A voluntary relinquishment of a known right is known as what?

A voluntary relinquishment of a known right is termed a waiver. This means that an individual consciously decides to give up a legal right or claim that they would usually be entitled to enforce. Waivers can occur in various contexts, including insurance, where a party may choose not to enforce a specific provision of a policy or a contractual obligation.

In the realm of insurance, the concept of a waiver is significant because insurers may waive certain rights, such as the right to deny a claim based on a party’s late filing if they have previously accepted documentation or acted in a way that suggests the claim will be honored.

Understanding the implications of a waiver is crucial because once a right has been waived, the individual may not be able to reinstate it later. This concept highlights the importance of careful decision-making in legal and insurance matters, as waiving a right could have lasting effects on one’s legal standing or ability to seek remedies in the future.

Other terms, such as estoppel, warranty, and concealment have distinct legal meanings that do not directly align with the idea of voluntarily relinquishing a known right. Estoppel refers to preventing a party from asserting something contrary to what is implied by a previous action or statement. A warranty is a guarantee