Florida Insurance Claims Adjuster License Practice Exam

What is a Waiver in the context of insurance?

1. The refusal to accept an insurance claim.

2. Cancellation of a policy by the insured.

3. The relinquishment of a legal right or claim.

4. A method to pay for insurance premiums.

The correct answer is: The relinquishment of a legal right or claim.

A waiver in the context of insurance refers to the voluntary relinquishment of a legal right or claim by the insured. This means that the insured gives up their right to make a claim or receive compensation for a specific incident covered by their insurance policy. Option A is incorrect because it implies that the insurance company is refusing to accept a claim, rather than the insured giving up their own right to make a claim. Option B is incorrect because it refers to the insured cancelling their policy, which is not the same as a waiver. Option D is incorrect because it does not accurately describe a waiver in the context of insurance.