Question

Isabel obtains a fire insurance policy on her home from Justice Insurance Company. The home is lost in a fire, but the parties dispute the amount of Justice's liability under an ambiguous clause in the policy. A court would most likely:

Option 1: Interpret the clause against Justice.

Option 2: Strike the clause from the policy.

Option 3: Interpret the clause against Isabel.

Option 4: Rewrite the clause and apply it as rewritten.

Answer 1

A court would most likely interpret the ambiguous clause in the fire insurance policy against Justice Insurance Company.

Step-by-step explanation:

In this case, where there is a dispute over the amount of liability under an ambiguous clause in a fire insurance policy, a court would most likely interpret the clause against Justice Insurance Company. This means that the court would interpret the clause in a way that is unfavorable to the insurance company.

By doing so, the court would protect the interests of the insured party, Isabel, and hold the insurance company responsible for a larger amount of liability.