Vidyalelo
Commerce · Q458

Insurance

Graduate and Post Graduate · Commerce · question 458

Q458

If complex language is used to word a certain policy document and it has given rise to an ambiguity, how will it generally be construed?

A.
In favour of insured
Answer
B.
In favour of insurer
C.
The policy will be declared as void and the insurer will be asked to return the premium with interest to the insured
D.
The policy will be declared as void and the insurer will be asked to return the premium to the insured without any interest

Answer: Option A

Solution

Answer: Option A
Solution:
if complex language is used to word a certain policy document and it has given rise to an ambiguity, it will generally be construed in favour of insured.