What is a non-waiver agreement in the context of insurance?

A non-waiver agreement is a legal document used by insurance companies that serves a crucial purpose in managing the relationship between the insurer and the insured, particularly in the context of coverage disputes. By preventing the insured from waiving coverage defenses, this document ensures that the insurer retains its right to contest liability or the terms of the coverage after it has begun to investigate a claim.

For instance, in situations where there are potential grounds to deny a claim based on policy exclusions or conditions, a non-waiver agreement allows the insurer to proceed with investigations and defend the insured while simultaneously preserving its rights to assert those defenses later. This is essential for protecting the interests of the insurance company and ensuring that there are no misunderstandings regarding what coverage is available for a particular claim.

In summary, the correct answer reflects the fundamental role of a non-waiver agreement in maintaining the integrity of the insurer's coverage defenses during the claims process.