Reservation of rights

Term · Insurance and risk management · MLC-T-INS-002905

A formal notice from an insurer to a policyholder indicating that it will proceed with investigating or defending a claim while reserving the right to deny coverage at a later date. This action is taken when there is a potential coverage dispute, such as a question of whether the policy applies to the specific loss. Failure to issue a reservation of rights letter can lead to the insurer being estopped from later denying coverage based on the policy defenses it knew about.

Table 1. Record
Identifier	MLC-T-INS-002905
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-002905",
  "term": "Reservation of rights",
  "field": "Insurance and risk management",
  "definition": "A formal notice from an insurer to a policyholder indicating that it will proceed with investigating or defending a claim while reserving the right to deny coverage at a later date. This action is taken when there is a potential coverage dispute, such as a question of whether the policy applies to the specific loss. Failure to issue a reservation of rights letter can lead to the insurer being estopped from later denying coverage based on the policy defenses it knew about.",
  "url": "https://mlchart.com/terminology/insurance/reservation-of-rights/"
}

Record 2,939 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.