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Difficulty: EasyWaiver and Estoppel

An insurance company receives a life insurance application in which the applicant accidentally left a question about their hobbies blank. The insurer decides to issue the policy without requesting the missing information. By issuing the policy, the insurer intentionally gives up its right to demand that information in the future.

What legal term describes the insurer's voluntary relinquishment of a known right?

  1. A
    Estoppel
  2. B
    Consideration
  3. WaiverAnswer
  4. D
    Representation

Answer

The voluntary relinquishment of a known right is called a waiver.
The correct answer accurately identifies that a waiver is the intentional and voluntary relinquishment of a known legal right, which directly matches the insurer's action in the scenario.

Step-by-Step Solution

1
Identify the core action taken by the insurer in the scenario.
The insurer voluntarily chose to issue the policy without requiring answers to a blank question, thereby giving up its right to that information.
Understanding the factual action is necessary to apply the correct legal terminology.
2
Match the identified action to the corresponding legal definition.
The intentional and voluntary relinquishment of a known legal right is defined as a waiver.
Differentiating between foundational legal concepts is required to answer correctly.

Key Concept

Waiver and Estoppel
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Topics

Waiver and Estoppel

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