Ambiguity

Terms or words in an insurance policy which make the meaning unclear or which can be interpreted in more than one way. The rule of law is that any ambiguity in the policy is construed against the insurer and in favor of the insured. This is because the contract is one of adhesion; that is, the insured must adhere to what the insurer has written. If the insurance does not make its contract clear, it is responsible

See Also: Assigned Risk; Assessment Company, Society or Insurer; All-Risks Insurance; Agent's Appointment; Agent; Adhesion; Accommodation Line; Accidental Means; Accident Frequency;

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