Ambiguities in insurance contracts are read in the manner most favorable to the insured because insurance is:
A)an indemnity contract.
B)a contract of utmost good faith.
C)a contract of subrogation.
D)a unilateral contract.
E)a contract of adhesion.

Question

Quizplus · Accepted Answer

Insurance contracts are considered contracts of adhesion because they are drafted by the insurer without negotiation with the insured, leading to ambiguities being interpreted in favor of the insured.

Ambiguities in Insurance Contracts Are Read in the Manner Most