What does it mean to "waive" a right in an insurance policy?

To "waive" a right in an insurance policy refers to the act of voluntarily relinquishing a known right under the terms of that policy. This means that the insured (the policyholder) has chosen to give up a specific legal right that they would otherwise have, which can sometimes be beneficial in resolving a claim or in negotiations. For example, if an insured person waives their right to sue the insurance company for a particular issue, they are accepting certain conditions and foregoing that option.

This concept emphasizes the importance of understanding the rights outlined in an insurance policy. Recognizing what rights can be waived, and the implications of waiving them, is crucial for both the insured and the adjuster handling the claim. The other choices do not correctly define waiving a right: ignoring a claim doesn't involve relinquishing a right, requesting new terms involves negotiation rather than waiver, and transferring rights pertains to the assignment of rights, which is a separate legal action.