General Insurance PrinciplesQuestion 132 of 158
Because the insured cannot negotiate the wording of a standard homeowners policy, ambiguous language in the policy will generally be interpreted:
a.In favor of the insurer
b.Equally between the parties
c.Against the insurer who drafted the contract
d.By a coin flip per California Insurance Code §1654
Explanation
An insurance policy is a contract of ADHESION drafted by the insurer. Under longstanding California law, any genuine ambiguity is construed against the drafter — the insurer — to protect the insured who had no chance to negotiate the terms.
Law Reference: Cal. Ins. Code §1633; Civ. Code §1654Practice all 158 questions free — no signup required.
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