Any ambiguity in the wording of a contract will be construed against the person who drew up the wording, i.e. in insurance against the insurer. The rule will only be applied where there is real ambiguity.
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In any unilateral contract, such as an insurance policy, any ambiguity in the language of the contract is strictly interpreted against the party that wrote the contractin this case, the insurance company. This is known as the contra proferentem rule and it involves a three-step process.First, the court examines the language in the policy to determine whether or not it is clear and unambiguous. Second, if the court decides the language is ambiguous, evidence is admitted in an attempt to determine the true meaning of the language. This can include, for example, testimony of the parties to the contract about their original intent. If the additional evidence does not clarify the policy’s language, then the contra proferentem rule is applied and the ambiguous language is interpreted in favor of the party bringing suit against the insurance company. (See Unilateral Contract).
Insurance Encyclopedia
Contraband of war
Goods that a belligerent may lawfully seize on the way to his enemy’s territory. When used in a marine insurance policy the term applies only to goods or merchandise. It does not extend to persons (officers of a belligerent power) even though their presence on ship may increase the risk of an attack. If a policy is warranted ‘no contraband’ the policy may be avoided if any part of the goods carried is contraband.
Contract
(01) A contract entered into by two or more persons under which one or more of them agree, for a consideration, to do or refrain from doings acts in accordance with the wishes of the other party(s). (02) In insurance, the agreement by which an insurer agrees, for a consideration to provide benefits, reimburse losses or provide services for an insured. A “Policy” is the written statement of the terms of the contract. (03) A contract is a legal agreement between two or more parties and has to comply with the provisions of the Indian Contract Act, 1872. An insurance policy is a contract. (04) An agreement under which an agency of agent does business with an insurance.
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MEDICAL,USA: 1. Legal enforceable agreement between the insurance carrier or managed care plan and the insured when relating to an insurance policy. 2. For workers’ compensation cases, an agreement involving two or more parties in which each is obligated to the other to fulfill promises made. In industrial cases, the contract exists between the physician and the insurance carrier.
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US: A binding agreement between two or more parties for the doing or not doing of certain things. A contract of insurance is embodied in a written document called the policy.
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MEDICAL,USA,REFERENCE: See: insurance policy .
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The agreement between the insured and the insurer, wherein it is agreed that consideration will be traded for benefits and services. This term can also mean the agreement between an insurer and the agency he or she works with.
Contract bonds
A type of bond designed to guarantee the performance of obligations under a contract. These bonds guarantee the obligee that the principal will perform according to the terms of a written contract. Construction contracts constitute most of these bonds. Contract bonds protect a project owner by guaranteeing a contractor’s performance and payment for labor and materials. Because the contractor must meet the surety company’s pre-qualification standards, construction lenders are also indirectly assured that the project will proceed in accordance with the terms of the contract.
Contract capitation
See: case-rate capitation.
Contract Carriage for Motor
A motor vehicle which carries passengers for hire or reward and is engaged under a contract, whether express or implied for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person holding a permit in relation to such vehicle or any person authorized by him in this behalf on a fixed or agreed rate or sum on (i) a time basis, or (ii) from one point to another, and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during the journey and includes a maxi cab and a motor cab.
Contract Carrier
A transportation company that carries, for payment, the goods of certain customers only, as contrasted with a common carrier who carries goods for the public in general.
Contract carrier (Property Insurance)
A company that transports the merchandise of certain merchants only, as opposed to a carrier who will carry cargo for the general public.
Contract cover
A commercial legal expenses insurance providing for the legal costs and expenses incurred in pursuing or defending contract disputes. Cover may be confined to disputes with customers or suppliers or give full contract cover. Policies are subject to a waiting period of 90 days.
Contract for Deed
An agreement by the seller to deliver the deed to the property when certain conditions have been fulfilled, such as the completion of certain payments and provisions of Insurance. It has similar features to a mortgage.