[amp_mcq option1=”In favour of insured” option2=”In favour of insurer” option3=”The policy will be declared as void and the insurer will be asked to return the premium with interest to the insured” option4=”The policy will be declared as void and the insurer will be asked to return the premium to the insured without any interest” correct=”option1″]<\/p>\n
The correct answer is: A. In favour of insured.<\/p>\n
If complex language is used to word a certain policy document and it has given rise to an ambiguity, the ambiguity will generally be construed in favor of the insured. This is because the law favors the insured in cases of ambiguity, in order to protect them from being taken advantage of by the insurer.<\/p>\n
Option B is incorrect because the insurer is not always favored in cases of ambiguity. In fact, the law generally favors the insured in these cases.<\/p>\n
Option C is incorrect because the policy will not necessarily be declared as void. If there is ambiguity in the policy, the court will try to interpret the policy in a way that makes sense and is fair to both parties. Only if the court is unable to do this will the policy be declared as void.<\/p>\n
Option D is incorrect because the insurer is not always required to return the premium with interest. If the policy is declared as void, the insurer may be required to return the premium to the insured, but they are not always required to pay interest on the premium.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”In favour of insured” option2=”In favour of insurer” option3=”The policy will be declared as void and the insurer will be asked to return the premium with interest to the insured” option4=”The policy will be declared as void and the insurer will be asked to return the premium to the insured without any interest” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-32277","post","type-post","status-publish","format-standard","hentry","category-insurance","no-featured-image-padding"],"yoast_head":"\n