Rhode Island Insurance Adjuster Exam

What characterizes a non-waiver agreement in insurance?

1. A document stating the insured accepts liability

2. A signed agreement for continuing claims without admitting liability

3. A form to cancel a policy

4. A notice that coverage will be permanently revoked

The correct answer is: A signed agreement for continuing claims without admitting liability

A non-waiver agreement in insurance is characterized by a signed agreement for continuing claims processing without admitting liability. This type of document is crucial when an insurance adjuster or company wishes to investigate a claim further without waiving their right to dispute coverage or liability. By using a non-waiver agreement, the insurer protects itself from inadvertently accepting coverage responsibilities or confirming liability while still managing the claim. This is particularly important in situations where there may be uncertainties regarding coverage or the nature of the claim. The agreement ensures that both parties can proceed with the claims process while maintaining clarity regarding the insurer's position on liability. This allows the insurer to gather necessary information and evaluate the claim thoroughly without compromising their legal rights.