Consumers Gets Benefit Of Doubt When Insurance Policies Unclear
|By Cy Ryan, Las Vegas Sun|
|McClatchy-Tribune Information Services|
The court said insurance companies must clearly state what is excluded from coverage.
"We interpret ambiguities in an insurance contract against the drafter, which is typically the insurer," Justice
The disputed case heard by the court was between
The insurance company argued its policy excluded any coverage from pollution, which the motel contested.
Douglas said the wording in policy was ambiguous and there were multiple reasonable interpretations.
"Any exclusion must be narrowly tailored so that it clearly and distinctly communicates to the insured the nature of the limitations, and specifically delineates what is not covered," Douglas wrote in the ruling.
Where there is ambiguous language, the court said, it "will interpret the policy to effectuate the insured's reasonable expectations."
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