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GlossaryClaims & Adjusting
Claims & Adjusting

Reservation of Rights Letter

Also known as: Reservation of Rights, ROR

A formal notice from an insurer advising an insured that the insurer is investigating a claim or defending a lawsuit while reserving its right to deny coverage later based on policy exclusions.

“An insurer providing defense under a reservation of rights avoids waiving policy exclusion defenses should non-covered causes subsequently be proven.”
claims-handling-standards · Coverage Investigation

Tested on

AdjusterProperty & Casualty

Related terms

SubrogationPrinciple of Indemnity

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