The General Rule That Ambiguity in Insurance Contracts Is Construed

question 37

Multiple Choice

The general rule that ambiguity in insurance contracts is construed against the insurer is reinforced by an important legal principle.This principle states the insured is entitled to coverage under a policy that he or she would assume the policy would provide,and exclusions must be conspicuous,plain,and clear.This principle is known as

• A)the principle of utmost good faith.
• B)the principle of reasonable expectations.
• C)the principle of subrogation.
• D)the principle of indemnity.

Recognize the significance of customer satisfaction and loyalty.

Identify strategies to reduce cognitive dissonance and ensure postpurchase satisfaction.

Define and differentiate key concepts such as consideration set, evaluative criteria, and points of difference.

Comprehend the economic and psychological impacts of purchase timing and sales promotions.

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Definitions:

Insurer

A company or entity which provides insurance coverage to individuals or organizations against potential losses or damages.

Defenses

Legal strategies and arguments used in court to negate, justify, or excuse alleged criminal or civil liabilities.

Judgment Pro Rata

A legal principle where the amount awarded or decided in judgment is distributed proportionally among creditors or claimants based on the size of their claims.

Personal Property

Assets or belongings that are not attached to or part of real estate; movable property.