Ted's insurance claim was denied by XYZ Insurance Company.When Ted inquired why the claim was denied,he was told to,"Read the exclusion on page 5 of the policy." Ted read the exclusion.In his opinion,the exclusion was poorly worded and vague.If a court of law agrees with Ted's assessment of the exclusion,Ted may still be able to have his claim paid by the insurer because insurance contracts are

Question

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Insurance contracts are considered contracts of adhesion, meaning that they are presented on a "take it or leave it" basis, with the insurance company having much greater bargaining power than the policyholder. As a result, any ambiguities or vague language in the contract are generally construed against the insurer, and courts may be inclined to interpret the contract in favor of the policyholder in cases where the language is not clear.

Ted's Insurance Claim Was Denied by XYZ Insurance Company