The general rule that ambiguity in insurance contracts is construed against the insurer is reinforced by an important legal principle.This principle states the insured is entitled to coverage under a policy that he or she would assume the policy would provide,and exclusions must be conspicuous,plain,and clear.This principle is known as

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The principle described in the question is the principle of reasonable expectations. This principle holds that an insured is entitled to coverage under a policy that they would reasonably assume the policy provides. Ambiguity in the policy language is therefore interpreted against the insurer, and exclusions must be clearly stated. The principles of utmost good faith and indemnity are related to insurance, but not directly relevant to the issue described in the question. The principle of subrogation allows an insurer to step into the shoes of the insured after paying a claim and seek reimbursement from a liable third party.

The General Rule That Ambiguity in Insurance Contracts Is Construed