Unlike declarations of reservation, non-waiver agreements are bilateral. By accepting a non-waiver agreement, it can be argued that the policyholder agrees with the terms of the insurance company`s defense agreement. Policyholders are not required to enter into a non-waiver agreement with their insurance company and an insurance company cannot compel the policyholder to defend himself. Sometimes a reservation letter with rights is included in your refusal letter. The insurance company can issue a refusal letter and then add a reserve letter to explain why and in what situations your coverage was denied. On the other hand, an insured person should take care of the protection of his own rights. An insured should require clarification as to why the insurer is considering refusing to cover itself. Before entering into a non-waiver agreement, an insured should seek legal advice on the legal effect of the non-waiver agreement in its ability to enforce the coverage provisions of the policy. When a new right is invoked, insurance companies often issue a letter of reservation to the policyholder. Alternatively, some insurers will issue a non-waiver agreement.
By adopting a non-waiver agreement, insurers attempt to obtain potential coverage defenses by getting the policyholder to agree that they can investigate the right or defend the policyholder while retaining the right to later challenge the coverage. A typical non-waiver agreement can be as follows: an insurer has a large number of other legal possibilities that can preserve its rights. One of the possibilities is to write a letter of reservation. Another possibility is for an insurer to refuse to cover itself and join the action as a third party, as explained below in this document. Another possibility is for a court to establish coverage as part of the policy before the investigation is completed. An actually developed non-waiver agreement should define the incident, indicate that it is investigating the incident and will delay an insurer`s decision to cover itself. In Harrison v. Ocean Accident & Guarantee Corp. Ltd defined the purpose of a non-waiver agreement as follows: in certain circumstances, however, the Tribunal authorized the insurer to rely on a letter of reservation. .