insurance, in terms of which the plaintiff was indemnified against stipulated losses and ambiguous in an insurance contract, a court should incline towards 7 Jan 2020 Rowley, Keith A., "Contract Construction and Interpretation: From the “Four Corners” to 1912), insurance policies, see, e.g., Universal Underwriters Ins. Co. v. evidence, to ascertain the existence of an ambiguity or a less-. Does the policy, fairly read, exclude coverage for accidents occurring while the rule that ambiguities in insurance contracts are resolved in favor of coverage. We find no patent ambiguity, but find the contract latently ambiguous, and affirm plans (including medical, dental, life insurance and long -term disability plans)
A dispute arose as to the meaning of an indemnity clause in a contract for the sale of shares in a motor insurance business. The contract was drafted by a law firm and both parties were legally represented during negotiations. However, the court described it as 'not precisely drafted' and 'avoidably opaque'. Insurance industry rule that if the terms of, or words in, an insurance policy do not carry a clear meaning then the meaning which goes against the insurance firm (and in favor of the insured) prevails. This is because an insurance policy is an adhesion contract the insured had no input in setting the terms of the policy.
Does the policy, fairly read, exclude coverage for accidents occurring while the rule that ambiguities in insurance contracts are resolved in favor of coverage.
Does the policy, fairly read, exclude coverage for accidents occurring while the rule that ambiguities in insurance contracts are resolved in favor of coverage. We find no patent ambiguity, but find the contract latently ambiguous, and affirm plans (including medical, dental, life insurance and long -term disability plans) An ambiguity in an insurance policy–after reading and interpreting the policy as a whole–will be construed against an insurer. T his means an ambiguity will be construed in favor of insurance coverage (for the benefit of the insured) as opposed to against insurance coverage. This does not mean that every insurance policy contains an ambiguity. A contract is ambiguous when it is uncertain what the intent of the parties was and the contract is capable of more than one reasonable interpretation. Sometimes ambiguous terms can be explained by the admission of parol evidence. Also, Courts abide by the rule that an ambiguous contract is interpreted against the party who drafted it. In other words, the party who did not draft the contract will be given the benefit of the doubt so to speak. What Is an Ambiguous Contract? A contract is considered to be ambiguous if the contract is reasonably subject to more than one interpretation. Sometimes, this can mean that it’s unclear as to what the parties intended overall. But usually, an ambiguous contract means that a specific term, word, phrase, or definition is vague or unclear. While Colorado offers parties great freedom to contract, and while insurance policies are generally interpreted like other contracts, because of the difference in bargaining power between insureds and insurance companies, policy language must be construed against the insurer when it is reasonably susceptible on its face to more than one interpretation and is thus ambiguous.
insurance contract resulted in a presumption of coverage in favor of the insured.9 While this is still the rule in a small number of jurisdictions, it is not the majority rule today. 10 So instead of automatically construing ambiguities against the drafter, many courts today But how will courts interpret an ambiguous contract? There is a general rule that a court will construe ambiguous contract terms against the drafter of the agreement. But this rule only applies where one contracting party is in a superior bargaining position, usually either as a result of greater experience or the assistance of counsel. 2 incorporation, insurance contracts) should be construed against the drafter without considering extrinsic evidence .. 40 b. Parties can contract around the contra proferentum rule .. 42 5. A “whereas” clause cannot create any rights arising from A dispute arose as to the meaning of an indemnity clause in a contract for the sale of shares in a motor insurance business. The contract was drafted by a law firm and both parties were legally represented during negotiations. However, the court described it as 'not precisely drafted' and 'avoidably opaque'. Insurance industry rule that if the terms of, or words in, an insurance policy do not carry a clear meaning then the meaning which goes against the insurance firm (and in favor of the insured) prevails. This is because an insurance policy is an adhesion contract the insured had no input in setting the terms of the policy. While Colorado offers parties great freedom to contract, and while insurance policies are generally interpreted like other contracts, because of the difference in bargaining power between insureds and insurance companies, policy language must be construed against the insurer when it is reasonably susceptible on its face to more than one interpretation and is thus ambiguous.