CARD Q015
An insurer intentionally gives up a known contractual right. Which concept most directly describes its action?
- Waiver
- Estoppel
- Concealment
- Subrogation
Waiver
Waiver is an intentional relinquishment of a known right. Estoppel can prevent a party from contradicting conduct another party reasonably relied on.
Why each choice is right or wrong
A. Waiver
Correct. Waiver is an intentional relinquishment of a known right. Estoppel can prevent a party from contradicting conduct another party reasonably relied on.
B. Estoppel
Incorrect. Estoppel focuses on preventing inconsistent conduct after reasonable reliance; the question directly states intentional surrender of a right.
C. Concealment
Incorrect. Concealment concerns withholding material information.
D. Subrogation
Incorrect. Subrogation concerns pursuing recovery rights after paying a loss.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.