Ambiguities in an insurance policy are resolved in favor of which party?

• A. The insurer
• B. The insured
• C. The beneficiary
• D. The policy owner

Answer: (B)

Ambiguities in an insurance policy are resolved in favor of the insured because the insurer drafts the contract and the policy serves as the insured’s protection document. When language is unclear, it’s only fair to interpret it in a way that aligns with the insured’s reasonable expectations of coverage, preventing the insurer’s drafting ambiguity from denying benefits. This approach is reinforced by the reasonable expectations doctrine: if a reasonable person would expect coverage under the circumstances, that expectation helps determine how the ambiguous language should be applied. In short, uncertain terms tend to be interpreted to provide coverage for the insured.