In general, an insured person is not required to sign a non-waiver agreement and is unlikely to be affected if they refuse to execute such a document. However, from a practical point of view, an insured person may be willing to sign a non-waiver agreement to avoid issuing a letter of reservation, as described below. Identify, if applicable, issues that could lead to a potential conflict of interest between an insurer and its insured; andA confirmation that an insured person has read and understood the agreement and may have had the opportunity to seek legal advice before signing it. Most insurance policies require an insurer to defend lawsuits against the insured if coverage exists. The possibility of conflict may arise if a claim exceeds the policy limit, if not all aspects of the claim are covered by the policy, if there are multiple policyholders with different interests, or if there is a valid non-waiver agreement or conditional letter. If there are conflicting interests or mandates between an insurer and its insured, a conflict may arise. However, it is important not to panic when you receive a letter regarding the reservation of rights: it is simply a document stating that the insurance company reserves the right to refuse the claim if the damage is not considered a covered loss. It also gives the insurance company the right to investigate your claim without confirming that coverage applies. Today, an increasing number of insurance companies will try to free themselves from this responsibility by sending you a “booking letter” before further investigation if they suspect that coverage does not apply. In many cases, the insurer may first submit a waiver agreement to be signed by the insured policyholder. If the policyholder does not sign the non-waiver agreement, a reserve letter often follows. When an insured person makes a claim under an insurance policy, insurers are faced with choices regarding their duty to defend and indemnification.
It is always possible that information may be provided that will allow the insurer to refuse coverage or prove that the policy has been violated. The insurer must decide at the outset whether to compensate the insured (taking into account a subsequent determination that coverage does not require it) or refuse to cover and risk the exposure for breach of contract (due to the insured`s lack of compensation under the policy). You did not report the claim in a timely manner: you did not report the claim as soon as possible, and now the insurance company will have difficulty properly investigating the claim due to this delay. In the New Brunswick Court of Appeal decision of Pembridge Insurance Company v. Speaking, the Court considered whether an insurer can file a defence against a third party who contradicts the defence filed on behalf of its insured […].
