By law, these discrepancies must be interpreted in favor of the policyholder. If any clause in the insurance contract was unconscionable at the time it was drafted, the court may refuse to enforce the contract or the offending stipulations. The insurer is responsible for meeting the objectively reasonable expectations of the insured and coverage must be provided accordingly. This is a key motivation for the purchase of indemnity products. Although the law requires an insurance company to consider the interests of the insured at least as much as its own, if there is any excuse for an insurance company to deny or limit coverage of a large claim, it probably will try to do so.
Insurance companies are masters of claims negotiation.
This electronic document is not offered nor intended for use as legal advice. Robert W. Battin provides legal counsel only to clients who have contracted with him for legal services.