Exam DISC-IA Practice Question 247
Study guide: Exam DISC-IA
A homeowners policy covers "water damage" without defining it and does not exclude earth movement. Heavy rain causes a mudslide that pushes mud and water into the house. The insurer says the term was meant only for water escaping from plumbing. How is a court likely to rule?
- A) The loss is excluded, because the insurer's intended meaning controls its own policy
- B) The loss is covered, because an ambiguous term is construed against the insurer that drafted it
- C) The policy is void, because an insurance contract is a contract of adhesion
- D) The court must send the question to the insurance commissioner, who approved the form
Answer this question and see the worked solution