A waiver is the intentional and voluntary relinquishment of a known legal or contractual right. In insurance, the concept becomes important when an insurer or another party knowingly chooses not to enforce a right that would otherwise be available under the contract.

For a waiver to exist, the party generally must possess the right, know that the right exists, and intentionally relinquish it through words, conduct, or circumstances demonstrating that the right will not be enforced. For example, certain conduct by an insurer may result in the insurer waiving its ability to rely on a policy condition if the insurer knowingly acts inconsistently with enforcement of that condition.

Waiver is distinct from estoppel, although the concepts are frequently studied together. Estoppel can prevent a party from asserting a right when another party has reasonably relied on that party ' s representations or conduct to the relying party ' s detriment. Waiver focuses primarily on relinquishment of the right itself.

Acceptance of policy terms concerns contract formation, while misrepresentation involves an inaccurate material statement. Merely modifying a right is also not equivalent to voluntarily surrendering it.

Thus, the precise definition of waiver is the intentional and voluntary giving up of a known right.

Study Guide Reference: General Insurance Concepts — waiver and estoppel; contractual rights; legal principles affecting insurance contracts.