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:

Evidence-based

A decision-making process that involves integrating best available research evidence with practitioner expertise and client preferences.

Decision Cycle

The process through which choices are identified, considered, and acted upon in a cyclical manner.

Crowdsourcing

The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people, especially from the online community.

Outsourcing

The business practice of hiring external parties to perform services or create goods that traditionally were performed in-house by the company's own employees and staff.