Watch the full video at https://youtu.be/TktjMrIBaOc and at https://rumble.com/vnnb6q-a-video-explaining-the-interpretation-of-insurance – contracts.html
The following rules govern the construction of insurance contracts:
If the conditions of a promise in any respect are ambiguous or uncertain, it must be interpreted in the sense that the promiser at the time of doing so, that the one who promised understood it. [ California Civil Code § 1649] (which provides an excellent definition of the basic rule of interpretation followed in most states).
“If a written contract is formulated in such a way that it can be given a definite or certain legal meaning, it is not ambiguous. "
But if" the language of a policy or contract is the subject of two or more reasonable interpretations, it is ambiguous. Simply put, all contracts are interpreted equally except for insurance contracts, which are interpreted to benefit the insured in case of ambiguity.
An insurer may not rely on an ambiguous interpretation of an insurance provision which, if interpreted as the insurer claims, would deprive the insured of coverage.
When the language of an insurance contract is reasonably receptive to two constructions, it should be interpreted in favor of the insured.
It is not necessary to show that the construction against the insurer is more logical than that against the insured; it is sufficient to show that the design in favor of the insured is as reasonable as that which benefits the insurer.
© 2021 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to serving as an insurance consultant specializing in insurance coverage, insurance claims handling, bad faith insurance and insurance fraud almost as much for insurance policyholders. .
He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance and claims management attorney and more than 54 years in the insurance industry.
Subscribe to Excellence in Claims Handling at https://barryzalma.substack.com/welcome.
He is available at http://www.zalma.com and email@example.com. Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award. For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their indemnity staff to become professionals in insurance claims.
Go to training available at https://claimschool.com; articles at https://zalma.substack.com, the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Mr. Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos at https://www.rumble.com/zalma; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to Insurance Claims Library-https: //zalma.com/blog/insurance-claims-library/ T the last two issues of ZIFL are available at https://zalma.com/zalmas-insurance-fraud- letter -2 / podcast now available at https://podcasts.apple.com/us/podcast/zalma-on-insurance/id1509583809?uo=4