What is the purpose of a Nonwaiver Agreement?

The purpose of a Nonwaiver Agreement is to ensure that both parties—typically the insurance company and the insured—do not waive their rights concerning claims made under an insurance policy. When an insured files a claim, there can be uncertainties about the coverage or the validity of the claim. A Nonwaiver Agreement allows the insurance adjuster to continue investigating the claim without risking the loss of the insurer's rights to deny the claim later based on policy exclusions or other reasons that were not initially apparent.

By entering into this agreement, both parties acknowledge that the investigation and any actions taken do not waive their rights to contest any future claims or the legitimacy of the claim itself. This is particularly important in the context of protecting the interests of the insurer while still allowing the insured to pursue their claim.

Effectively, the Nonwaiver Agreement establishes a framework that clarifies the ongoing relationship between the insurer and the insured during the claims process and ensures clarity on how rights and responsibilities are managed. This is why the answer regarding both parties maintaining their rights regarding claims is accurate and reflects the foundational purpose of such an agreement.