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Interpreting Policy Terms: Plain Meaning and Ambiguity

Learn the different rules that apply to interpreting unambiguous and ambiguous insurance policy terms.


In a separate lesson, we went over the general principles for insurance-policy interpretation. For instance, policy sections must always be read together as a whole to determine a specific provision’s meaning. In this lesson, we’ll look more in-depth at specific interpretation rules used to determine whether a policy term is clear or ambiguous and how that determination impacts the term’s contractual meaning.

Imagine a traveler died on a flight. A standard-form travel-insurance policy provided...