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Difficulty: EasyWaiver and Estoppel

An insurance applicant leaves several questions blank on a health insurance application. The insurer accepts the incomplete application and issues the policy anyway. By issuing the policy without requiring the missing medical history, the insurer has voluntarily surrendered its right to demand that information. Which legal concept does this action demonstrate?

  1. WaiverAnswer
  2. B
    Estoppel
  3. C
    Warranty
  4. D
    Implied authority

Answer

Waiver
The correct answer accurately identifies that a waiver is the intentional and voluntary relinquishment of a known legal right. By issuing the policy without the missing answers, the insurer waived its right to that information.

Step-by-Step Solution

1
Analyze the insurer's action in the scenario.
The insurer voluntarily accepted an incomplete application and gave up its right to ask for the missing information.
Identifying the specific action helps map it to the correct legal definition.
2
Match the action to the correct legal doctrine.
The voluntary relinquishment of a known right is legally termed a waiver.
Differentiating between the act of giving up a right (waiver) and the resulting legal block on reclaiming it (estoppel) is critical for contract law.

Key Concept

Waiver and Estoppel in Contract Law
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Topics

Waiver and Estoppel

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