The intentional relinquishment of a known right is called what?

• A. Waiver
• B. Estoppel
• C. Election
• D. Risk

Answer: (A)

Waiver is the intentional relinquishment of a known right. It happens when a party with a lawful right decides not to enforce it, even though they could. In insurance practice, waiving a policy condition might occur if the insurer or insured acts in a way that signals the right won’t be strictly enforced—for example, accepting a claim after a deadline or not insisting on a required notice. Because the surrender of the right is knowing and deliberate, it becomes effective without any new consideration. Estoppel, on the other hand, involves relying on someone’s conduct to your detriment and then preventing the enforcement of the right. Election is about choosing between two or more remedies or rights, not surrendering a single known right. Risk is simply the possibility of loss and isn’t about relinquishing a right.