Reservation of Rights

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What does Reservation of Rights mean? Read on to discover the definition & meaning of the term Reservation of Rights - to help you better understand the language used in insurance policies.

Reservation of Rights

Reservation of Rights

Reservation of rights (ROR) is a letter sent by the insurer to an insured that informs him or her that the company may not cover a claim. It also announces that the insurer will investigate the soundness of the claim and can advise the insured that he or she may wish to seek out other options for defense regarding a legal action against him or her should the insurer not provide coverage.

More Insurance Terms And Definitions

The Merriam-Webster Dictionary defines insurance as:

a: The business of insuring persons or property.

b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.

c: The sum for which something is insured.

We hope the you have a better understanding of the meaning of Reservation of Rights. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for:

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