Florida Insurance Claims Adjuster License Practice Exam

In the case of an unclear or ambiguous insurance policy, in whose favor does the policy respond?

1. The insurer

2. The insured

3. The underwriter

4. The beneficiary

The correct answer is: The insured

An unclear or ambiguous insurance policy can be interpreted in different ways, causing confusion and disputes between the involved parties. In such cases, the principle of contra proferentem is used, which means that any ambiguous terms or provisions in the policy will be interpreted against the insurer and in favor of the insured. This is to protect the insured from any potential harm or loss that may arise from the ambiguity of the policy. Therefore, in the case of an unclear or ambiguous insurance policy, the policy will respond in favor of the insured. Option A, the insurer, is incorrect because they are the party providing the insurance coverage and would not benefit from an unclear or ambiguous policy. Option C, the underwriter, is incorrect because they are responsible for assessing risks and setting premiums, but they are not involved in the interpretation or enforcement of the policy. Option D, the beneficiary, is incorrect because they are