Completing the Application, Underwriting, Delivering Policies, Contract Law
Because insurance contracts are contracts of adhesion prepared solely by the insurer, how do courts resolve genuine ambiguities in policy wording?
Answer and explanation
Answer: C. Contracts of adhesion are drafted by one party (insurer); courts strictly construe ambiguities against the drafter in favor of coverage.Source: Texas Supreme Court (RSUI v Lynd) — Opinion page 6
More completing the application, underwriting, delivering policies, contract law questions
- What non-profit central information bureau, supported by insurance companies, collects and shares coded medical background data with member insurers during underwriting?
- What right does the GLBA opt-out notice provide to policyowners regarding nonpublic personal financial information?
- When a corporation is the proposed policyowner, what should identify the person signing for it?
- When a policyowner stops paying premiums, allowing a term life policy to lapse, the insurer cannot take legal action to force the owner to continue making payments. Which characteristic of insurance contracts does this limitation reflect?
- When an applicant submits a completed application WITH initial premium, what legal act does the applicant perform in contract law?
- When must an insurable interest exist in life insurance contracts under Texas law?
590 Texas questions like this one.
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