What is an Insurance Waiver?

A waiver is a form or document that is used to release a person or organization from liability. For example, a person who is learning how to dive may be given a waiver form by his instructor. By signing the waiver form, the individual would be agreeing to not hold the instructor and the organization responsible for any accidents they did not cause or contribute to because of negligence. An insurance waiver is a little different, however. An individual usually signs this type of waiver when he has been offered a type of insurance and has decided to decline it.

Sometimes an insurance waiver form is used by educational institutions. For example, a higher education institution may require its students to enroll in a student health insurance plan it sponsors. If a student already has insurance and wishes to keep it, he may not need the student insurance plan. In such a case, the school may require him to sign a form stating that he declines the student health plan because he already has health insurance coverage. Sometimes a student may want the health insurance but decide to decline the dental and vision part of the plan; when this happens, the student may sign an insurance waiver that only covers the insurance programs he does not need.

In some cases, individuals may be asked to sign insurance waivers at their places of employment. For example, a company may offer some type of insurance as part of its employee benefit package. An individual may, however, have a better plan with lower rates that he wants to keep. Sometimes an employee wants to decline coverage because he is already covered through a spouse’s employer-sponsored insurance program. In such a case, the employer may ask the employee to sign a form attesting to the fact that he has declined coverage through the employer’s plan.

Sometimes an individual may even be asked to sign an insurance waiver by an insurance company or agent. An individual may, for example, purchase life insurance coverage from an insurance company. The insurance agent may offer an additional type of insurance as an option on his life insurance coverage. If the person refuses the optional coverage, the insurance agent may ask him to sign an insurance waiver. Essentially, signing this waiver is intended as an acknowledgment of the offer of optional insurance as well as the refusal of it.