The fact that buyers usually have no influence over the content or form of insurance policies has had a significant impact on the way courts interpret policies when there is a dispute.Which of the following is true when there is a dispute and the matter goes to court?
A)When the terms of a policy are ambiguous, the courts favor the insurer.
B)When the terms of a policy are ambiguous, it is assumed that the insured that writes the contract should know what it wants to say and how to state it clearly.
C)The policy language generally is interpreted according to the underwriter who is knowledgeable about insurance.
D)The policy language is interpreted according to the insured's level of expertise and situation.
E)When the terms are not ambiguous, the courts have changed the contract in favor of the insured.

Question

Quizplus · Accepted Answer

Courts often interpret ambiguous policy language in favor of the insured, considering their level of expertise and situation, as they typically have less influence over the policy terms.

The Fact That Buyers Usually Have No Influence Over the Content