When is a non-waiver needed by an insurer?

Any time that a possibility that a claim may be denied, or not covered, it must be spelled out to the claimant, early in the process, rather than at the end of the claims process. This must be done in writing, and must be signed, to let the claimant understand that it may not be accepted and processed. If the claimant does not comply, a similar letter outlining this fact may be sent by registered mail, essentially stating the same.

It is used as a CYA effort, to protect the company, if a lawsuit is brought after the denial, and may force the company to pay the claim, even though it had every legal right to deny the claim.

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