Exam DISC-IA Practice Question 27
Study guide: Exam DISC-IA
A homeowners policy excludes damage caused by "surface water" without defining the term. After a mudslide set off by a rainstorm, the insurer and the insured read the word differently, and the court finds both readings reasonable. Which characteristic of insurance contracts most directly leads the court to adopt the insured's reading?
- A) The policy is aleatory, so doubt favours the party who paid premium
- B) The policy is unilateral, so only the insurer's promises are read
- C) The policy is made in utmost good faith, so the insurer must disclose
- D) The policy is a contract of adhesion, so ambiguity goes against the drafter
Answer this question and see the worked solution