General Insurance PrinciplesCâu 163 / 474
Because an insurance policy is written by the insurer and offered on a take-it-or-leave-it basis, any ambiguity in the wording is generally interpreted:
a.By splitting the difference equally
b.By a neutral government agency
c.In favor of the insurer
d.In favor of the insured
Giải thích
An insurance policy is a contract of adhesion, drafted entirely by the insurer with no negotiation by the applicant. Because the insured had no hand in the wording, courts resolve genuine ambiguities in favor of the insured. This rule encourages insurers to write clear policy language and protects consumers who must accept the contract as written.
Luyện miễn phí toàn bộ 474 câu hỏi — không cần đăng ký.
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Câu hỏi liên quan cùng chủ đề
- For a homeowner to collect on a property insurance claim, insurable interest must exist:
- The principle of indemnity means an insured who suffers a covered loss should be:
- A condition that increases the chance or severity of a loss, such as a worn extension cord, is a:
- A homeowner faces the chance that a kitchen fire will destroy the house. Insurers call this a pure risk because:
- An insurer writing hundreds of thousands of similar homeowners policies can price them because the law of large numbers holds that:
- Underwriting exists largely to control adverse selection, which is the tendency of:
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