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Question: Under the principle of contract of adhesion in insurance

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  1.  The insured has the opportunity to help write up the insurance contact
  2.  Ambiguities are always construed against the insurer writing up the insurance contract in favor of the insured
  3.  The insurance company writes the contract with the approval of the state legislature in each jurisdiction where a policy is sold
  4.  There is an unequal amount of dollars changing hands in the insurance contact
  5.  The insured is entitled to only the amount of financial loss sustained and no more

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2. Ambiguities are always construed against the insurer writing up the insurance contract in favor of the insured

Under the principle of contract of adhesion in insurance, Ambiguities are always construed against the insurer writing up the insurance contract in favor of the insured.


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Contracts of Adhesion are contracts where there is very little or no negotiation related to the terms and conditions of the contract. The other has no option but to accept the terms and conditions of the contract.

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