Which of the following can help avoid estoppel in insurance claims?

The use of a reservation of rights letter is crucial in the context of avoiding estoppel in insurance claims. When an insurer issues a reservation of rights letter, it effectively communicates to the insured that while the insurer is willing to investigate and possibly defend a claim, it retains the right to deny coverage based on certain policy provisions. This letter serves as a formal notification of the insurer's position regarding potential limitations or exclusions in the policy.

By providing this notice, the insurer protects itself against claims of estoppel, which could arise if the insured were to argue that the insurer had waived certain rights or coverage defenses due to the insurer’s actions or failure to fully inform them about the limitations of their coverage. The reservation of rights allows the insurer to proceed with defending the claim while simultaneously preserving its right to deny coverage later if it finds that the situation falls outside the terms of the policy.

In contrast, written policy agreements provide the foundational terms and conditions of the insurance coverage but do not specifically address the insurer's intentions regarding claims handling or coverage defenses. Oral agreements lack the formal documentation and clarity that are necessary for establishing clear terms, making them less reliable. Claims submission refers to the process by which an insured reports a claim to the insurer; while it is essential for initiating