Which statement BEST describes the doctrine of WAIVER in California insurance law?
Explanation
WAIVER is the voluntary and intentional relinquishment of a known right. In California insurance law (see e.g., California Insurance Code §650 and case law), an insurer that knows of a policy defense (such as late payment, breach of a condition, or a misrepresentation) yet acts inconsistently with reliance on that defense — for example, accepting a late premium without reservation, or continuing to process a claim — may be held to have WAIVED the defense and cannot later assert it to deny coverage. ESTOPPEL is related but distinct: it focuses on the OTHER party's detrimental reliance on the first party's conduct, regardless of intent. Option B fabricates a notarization requirement. Option C overstates the equivalence — though both reach a similar result, the elements differ (intent vs. reliance). Option D is wrong; either party may waive a right.
Law Reference: California Insurance Code §650 (abandonment / waiver of subrogation principles)Practice all 315 questions free — no signup required.
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