Estoppel is designed to protect which parties in an insurance agreement?

Estoppel is a legal principle that prevents a party from asserting a claim or right that contradicts what they have previously established as true or accepted. In the context of insurance agreements, estoppel is primarily designed to protect the insured party based on their reasonable belief in certain representations made by the insurer.

When an insured relies on representations, promises, or conduct of the insurer when entering into an insurance contract, estoppel can prevent the insurer from later denying coverage or altering terms that the insured reasonably believed to be in effect. This principle is crucial in maintaining fairness and trust in insurance transactions, as it ensures that insurers cannot unjustly alter their position to the detriment of the insured after the insured has relied on their statements or actions.

In this case, the focus is on the insured, as they are the party that stands to be adversely affected if an insurer contradicts prior commitments or representations. The intentions of estoppel are to protect the reasonable expectations of the insured stemming from their interaction with the insurer.

The other parties mentioned—insurers, brokers, and regulatory bodies—do not benefit from estoppel in the same direct manner. Insurers may be restricted in their actions, but estoppel primarily safeguards the rights and reasonable beliefs of the insured.