Which agreement allows one party to forfeit its rights to pursue a claim after paying a premium?

A subrogation waiver is a specific type of agreement where one party agrees to relinquish its rights to pursue a claim against another party, typically after they have received a benefit, such as insurance coverage, in exchange for paying a premium. This means that the party that receives a benefit from insurance cannot later claim reimbursement from the other party involved (usually the one who caused the loss) for any amounts they were covered for. This arrangement is often used in insurance contracts and protects the insurer from further liability once they have compensated the insured party.

On the other hand, a nonwaiver agreement allows an insurer to investigate a claim without relinquishing its right to deny liability later, thus it does not involve paying a premium to forfeit rights. A reservation of rights letter indicates that the insurer is proceeding with claim investigation while reserving the right to deny coverage in the future; this again does not involve forfeiting rights after the payment of a premium. A declaratory judgment action is a legal proceeding where the court determines the rights and obligations of the parties involved but is not related to the specific agreement of waiving subrogation rights after payment.

Therefore, the subrogation waiver reflects the concept of forgoing the right to pursue claims in exchange for