What are the types of defenses in an insurance claim?
In Mississippi, there are three main types of defenses that an insurance company may use to deny an insurance claim. These defenses are known as “common law defenses” and are based on principles established by the court system. The first defense is known as waiver. Waiver occurs when the policyholder, or someone acting on their behalf, voluntarily gives up their right to make a claim against the insurance policy or obtain compensation. In order for an insurance company to successfully use this defense, they must be able to prove that the individual knew what they were doing and had no expectation of being compensated. The second defense is known as estoppel. Estoppel is a legal principle that states that if one party has acted in a certain way, they cannot later claim they had a different expectation. This could mean that if the policyholder had previously indicated that they did not want to make an insurance claim, they could not then later attempt to make a claim. The third defense is known as contributory negligence. This is a legal principle that states that if both parties are found to be partly responsible for the incident that caused the damages, then the party who contributed the most to the incident will not be compensated. These common law defenses are the three main types of defenses used by insurance companies to deny insurance claims. By being aware of these defenses, an individual can better protect themselves and make sure they are not taken advantage of by an insurance company.
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