Ambiguities in an insurance policy are always resolved in favor of the?

In insurance contracts, there is a legal principle known as "contra proferentem," which means that any ambiguities or unclear terms in a policy are typically interpreted in favor of the insured, or the person holding the policy. This principle is grounded in the idea that the insurance company, as the drafter of the policy, has the responsibility to present the terms clearly and understandably. If any terms are vague or confusing, the insured should not suffer due to the insurance company’s lack of clarity.

This approach helps protect consumers by ensuring that they receive the benefits and coverage they expect under the policy. It encourages insurers to provide clear and precise language in their contracts, as they bear the risk of interpretation issues. Thus, when uncertainties arise, those uncertainties are resolved in favor of the insured, reaffirming their rights and expectations under the agreement.