Question

An insurance policy is often referred to as a contract of adhesion. This means:

a. If any of the wording or language in the policy is vague or ambiguous, if the meaning of the wording is difficult to understand or interpret, or if what is written can be interpreted to have different meanings, the law is well settled that the interpretation shall be in favor of the party who did not control its terms...in this case, the policyholder.
b. Both parties are required to strictly adhere to the specific wording of the policy.
c. The insurance company is required by law to unilaterally waive any policy requirements that are deemed vague or ambiguous.
d. The policy is strictly interpreted in favor of the party who had control over its creation

Answer 1

An insurance policy is often referred to as a contract of adhesion because it is prepared by the insurer and the insured has little to no input in its terms.

Step-by-step explanation:

The correct answer to the question is d. The policy is strictly interpreted in favor of the party who had control over its creation. An insurance policy is often referred to as a contract of adhesion because it is prepared by the insurer and the insured has little to no input in its terms. As a result, any ambiguities or uncertainties in the policy are typically interpreted in favor of the insured, who did not control its terms.