Insurance
Nov. 13, 2014
When interpreting ambiguous terms, consistency prevails
An interesting issue in applying interpretation canons arises when an ambiguous term appears multiple times in the policy, especially where that ambiguous term appears in both the coverage clause and an exclusion. By Emily Cuatto
One of the fundamental canons of insurance policy interpretation is that in the event of an ambiguous term, a court will apply the meaning most favorable to the insured. Another prominent canon of construction provides that coverage clauses are construed broadly whereas exclusions are construed narrowly. A third (less-frequently referenced, but equally hornbook) canon of construction is that words used in one sense in one part of a contract of ins...
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