What is it called when an insurance company fails to enforce a contract's provision?

When an insurance company fails to enforce a provision of a contract, this scenario is referred to as a waiver. A waiver occurs when one party to a contract voluntarily relinquishes a known right. In the context of insurance, if the insurer does not enforce a specific provision—such as a condition for providing coverage—this can imply that the insurer has chosen not to insist on that provision at that time, which may affect their ability to enforce it later.

Understanding this concept is important because waivers can have significant implications for both the insurer and the insured. For example, if an insurer waives a requirement for timely notification of a claim, they may be diminished in their ability to deny coverage based on that requirement later on. This underscores the need for both parties to recognize and uphold contract provisions to ensure that rights and obligations are preserved.

The other concepts, such as warranty, assignment, and concealment, refer to different aspects of insurance contracts and do not specifically pertain to the failure of one party to enforce a provision. A warranty is a promise that certain conditions will be met, assignment refers to the transfer of rights under a policy, and concealment involves withholding information that could affect coverage or claims.