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. 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. Paul`s logic was solid. The insurance policy does not include the signing of such agreements in the Post-loss obligations section. Secondly, the Florida insurance company already saw the problem covered: the effectiveness of a booking letter depends on the clarity of the explanation of the specific situation, the amount of information provided, the reasons for the refusal of coverage and when the letter is written. It is important to note that courts have been more willing to accept a reserve letter if a non-waiver agreement has been requested but the insured has not executed 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. The Campbell case is a clear reminder that if there are doubts about a duty to defend, or if there is an obligation to defend oneself, but there may be no obligation to pay compensation, the insurer must take steps to alert the insured to coverage concerns through a non-waiver agreement or reservation of rights. Failure to do so may leave the insurer on the hook, even if these are otherwise applicable policy exclusions. 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 present a waiver agreement to be signed by the insured policyholder. .