When an insurance policy is ambiguous, the policy is interpreted:
A) against the insurer.
B) in favor of the insurer.
C) according to the dictionary meaning of the words.
D) according to the meaning of the words in the insurance industry.

Question

Quizplus · Accepted Answer

When an insurance policy is ambiguous, it is generally interpreted against the insurer because they are the ones who wrote and issued the policy. This is based on the legal principle of contra proferentem, which means that any ambiguity in a contract should be construed against the party that drafted it.

When an Insurance Policy Is Ambiguous, the Policy Is Interpreted