Louisiana P&C Adjuster Practice Exam

Which term refers to a voluntary relinquishment of a known right in an insurance context?

1. Express waiver

2. Implicit waiver

3. Formal waiver

4. Conditional waiver

The correct answer is: Express waiver

The term that refers to a voluntary relinquishment of a known right in an insurance context is an express waiver. An express waiver is a clear and intentional decision by an individual or a party to give up a specific right. This act must be unambiguous, indicating that the party is fully aware of the right being surrendered and has explicitly chosen to waive it. In the realm of insurance, express waivers often occur when an insured party agrees to certain terms or conditions that might otherwise grant them specific rights—such as the right to seek certain compensations or benefits. This kind of waiver is documented and clear, reinforcing the idea that the person understands what they are relinquishing. The other terms do not encapsulate this concept effectively. Implicit waiver refers to a situation where the waiver of a right is inferred from conduct rather than clearly stated. A formal waiver usually implies a specific procedure or format that may not be necessary for all waiver types. Lastly, a conditional waiver indicates that the relinquishment of rights is subject to certain conditions being met. None of these definitions involve the clear and unambiguous declaration that characterizes an express waiver.