What does a non-waiver agreement allow an insurer to do?

A non-waiver agreement is a critical document in the claims process, particularly when there are questions about coverage. It allows the insurer to continue investigating and processing a claim without giving up its right to deny coverage later on. This is important in cases where there may be factors that could potentially exclude coverage—such as policy limitations, exclusions, or questions regarding the details of the loss.

By signing a non-waiver agreement, the policyholder acknowledges that while the insurer is investigating the claim and providing some level of service or payment, this does not prejudice the insurer’s ability to deny the claim based on the findings of that investigation. Therefore, the insurer can uphold its rights regarding coverage decisions, ensuring that they are not automatically bound to accept liability simply because they are engaging in the claims process.

The other options misrepresent the purpose of a non-waiver agreement. For example, waiving rights to deny future claims or automatically paying claims would undermine the insurer’s ability to carefully assess each claim's validity and ensure that claims are settled based on the terms of the policy. Similarly, forcing a policyholder to accept a settlement doesn’t accurately reflect the intent or function of a non-waiver agreement.