If a Provision in an Insurance Policy Is Ambiguous

question 12

Multiple Choice

If a provision in an insurance policy is ambiguous:

• A) it is interpreted in favor of the insurer because the insured could have rejected the policy.
• B) it is interpreted against the insurer.
• C) parol evidence is admitted to show what was intended.
• D) the policy is declared void and the insurer is required to return all premiums to the insured.

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Definitions:

Win-Win Solution

A resolution to a conflict where all parties benefit or achieve their objectives without compromising.

Concerns

Issues or matters that are a cause for worry or care, often requiring attention or action.

Satisfactory Solution

An outcome or resolution to a problem that meets the requirements or expectations to an acceptable level.

Competence

The quality of being competent; adequacy; possession of required skill, knowledge, qualification, or capacity.