When reviewing a denied claim, an attorney discovers that a specific exclusionary clause used by the insurance company contains highly ambiguous language. Because insurance policies are drafted entirely by the insurer on a take-it-or-leave-it basis, they are legally classified as contracts of adhesion. Based on this characteristic, how is the contractual ambiguity typically resolved?
- AThe confusing provision is interpreted to protect the insurer from paying an unintended claim.
- The confusing provision is strictly construed against the insurer and in favor of the insured.Cevap
- CThe entire policy is voided due to a failure in the exchange of valid consideration.
- DThe ambiguous wording is treated as a breach of warranty by the insured party.
Cevap
The ambiguity is resolved by strictly construing the provision against the insurer and in favor of the insured.
Because insurance contracts are drafted entirely by the insurance company without any negotiation from the applicant, they are known as contracts of adhesion. A fundamental legal principle governing these contracts is that any ambiguity in the language must be interpreted strictly against the party who wrote it (the insurer) and in favor of the party who had no say in the wording (the insured).
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Anahtar Kavram
Contracts of Adhesion and Ambiguity