Life & Health Insurance Practice Exam 2025 – Your All-in-One Guide to Exam Success!

The legal concept that prevents a party from denying the effects of their actions is known as estoppel. Estoppel arises when one party has made representations or has conducted themselves in such a way that another party has relied on those actions or representations, leading to a change in position or action by the second party. It serves to prevent the first party from arguing against the established facts that they created by their earlier conduct.

In contexts like insurance or contractual relationships, if one party induces another to act (or refrain from acting) based on certain representations, estoppel can ensure that the first party cannot later contradict those representations if it would harm the party that relied on them. Essentially, estoppel promotes fairness and prevents injustice by holding parties to the consequences of their actions or statements.

The other concepts, such as liability, duty of care, and negligence, address different aspects of legal responsibility and do not specifically cover the scenario of preventing denial based on previous actions.