What Rule of Construction Is Followed in Interpreting the Language

question 9

Multiple Choice

What rule of construction is followed in interpreting the language of an insurance policy that is considered to be ambiguous?

• A)That the policy should be interpreted to deny coverage to as many employees as possible.
• B)That the policy should be interpreted against the insurance company and in favor of as many employees as possible.
• C)Courts are not allowed to interpret insurance policies.
• D)That the policy should be interpreted in favor of the state, whenever possible.

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Definitions:

Legal Fees

The charges for services provided by lawyers or law firms, including consultations, representation in legal matters, and the preparation of legal documents.

Promoter Fees

Charges or expenses paid to an individual or company for organizing and finding investors for a particular project or business venture.

Paid-in Capital

The amount of capital provided by shareholders in exchange for shares of stock during the initial offering or through subsequent stock offerings.

Retained Earnings

The portion of a business's profits not distributed to shareholders but instead reinvested in the business or kept as reserve.