If an insurer knowingly fails to enforce a policy provision on one occasion, the insurer may be prevented from enforcing it on a subsequent occasion by the principle of:
Comprehensive and Detailed Step by Step Explanation:
The principle ofestoppelprevents a party from asserting rights or enforcing terms if their prior actions contradicted such enforcement.
Estoppel (C):If the insurer knowingly disregards a policy provision (e.g., a late premium payment), they may be barred from enforcing it later if the policyholder relied on the prior inaction.
Adhesion (A):Refers to contracts where terms are dictated by one party (e.g., the insurer), not applicable here.
Waiver (B):Occurs when an insurer voluntarily relinquishes a known right but does not necessarily create future obligations like estoppel does.
Subrogation (D):Involves transferring the insured’s claim rights to the insurer after a loss, unrelated to this scenario.
[References: Maryland Legal Doctrines on Insurance Enforcement and Contractual Estoppel., ]
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