General Insurance PrinciplesQuestion 183 of 474
An adjuster writes to an insured that a late proof of loss will not be a problem, and the insured relies on that. The insurer is likely barred from denying on that ground by:
a.abandonment, because the insurer gave up the damaged property
b.arbitration, because a neutral third party would settle the dispute
c.subrogation, because the insurer takes over the insured's own rights
d.estoppel, because the insured relied on the insurer's own conduct
Explanation
Waiver is the voluntary giving up of a known right, and estoppel then stops a party from asserting the right after the other side reasonably relied on its words or conduct to its detriment. Here the adjuster's written assurance is the conduct relied on. Subrogation concerns recovery from a third party at fault, and abandonment is the insured's attempt to dump damaged property on the insurer.
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