The legal definition of waiver is the intentional relinquishment of a known right. Sometimes an insurer or its agent might overlook a provision that might have been grounds for denying coverage or increasing the premium. By doing so, the insurer might have relinquished its right to deny coverage or exercise options at a later date by creating a waiver. Arepresentation is a statement believed, but not guaranteed, to be true, whereas a warranty is a statement guaranteed to be true. Aunilateral contract is one in which only one party is obligated to perform its part of the agreementfor example, an insurance contract is unilateral because an insured might choose not to enter the agreement by paying the premium, but if the insured pays the premium, the insurance company is obligated to pay for covered losses.