provision in property insurance that waives, under specified circumstances, the requirement for an inventory of undamaged property when a damage claim is filed. A coinsurance clause in a fire insurance policy typically requires such an inventory or appraisal at the time of a claim. The waiver avoids the expense of an inventory when the claim is small. Under one common formula, the inventory requirement is waived when the claim is for less than $10,000 and is also for less than 5% of the limit of all insurance coverage applicable to the property.

in life insurance, action by an insurance company canceling premium payments by an insured who has been disabled for at least six months. The policy remains in force and continues to build cash values and pay dividends (if it is a participating policy), just as if the insured was still making premium payments. Experts suggest that this clause should be considered in a life insurance policy since the probability of becoming disabled is 7 to 10 times greater than death at younger or middle ages.

clause in a surety bond contract providing for restoration of coverage after a loss without requirement of a restoration premium.

clause added to an insurance policy providing Waiver of Premium (WP) if the premium payer dies or becomes disabled. For example, this option is available on insurance policies on a child's life where the premium is paid by an adult, or on life and health policies for adults.

endorsement to a property liability policy whereby an insurer gives up the right to take action against a third party for a loss suffered by an insured. Typically, under terms of the subrogation clause the insurer, having paid an insured for a loss, takes over any rights possessed by the insured who has suffered the loss. For example, an insured, John Smith, is hit by another car while he is driving. His insurance company pays his claim and then may sue or attempt to recover damages from the other driver. In certain instances, the insured might want to get a waiver of subrogation rights from the insurer. For example, if a landlord assured a tenant that the tenant was not responsible for damage to the landlord's property, the landlord could make good on that promise only by getting the insurer to waive its subrogation rights. Otherwise, if the landlord's property was damaged by the tenant, the insurer would have to pay the claim and could then try to collect damages from the tenant.

a voluntary relinquishment of a right to property owned, claim against another's property, or to any legally enforceable right. In banking, the term has numerous meanings, such as an agreement not to charge a credit card annual fee during the first year after a new card is issued, or an agreement to forgo overdraft charges on bad checks.