What does the waiver doctrine in insurance contracts allow?

The waiver doctrine in insurance contracts allows insurers to relinquish known rights voluntarily. This legal principle applies when an insurer knowingly abandons its right to enforce certain provisions of the policy. For instance, if an insurer consistently accepts late premium payments without taking action against the insured, it may be deemed to have waived its right to cancel the policy for non-payment.

By understanding the waiver doctrine, it's clear that it emphasizes the role of intention and consent in the insurance relationship. If an insurer acts in a way that suggests it is choosing not to enforce its rights, it can prevent itself from later claiming those rights in a dispute. This helps in maintaining fair dealings between parties, ensuring that insurers cannot simply rely on their rights whenever it suits them without considering their previous actions.

This understanding of the waiver doctrine reinforces the need for insurers to be cautious in their dealings with policyholders, as their actions can have lasting implications on their ability to enforce the terms of the contract.