L&HFloridamedium
An insurance policy is called a contract of adhesion. What practical legal consequence flows from this classification when policy language is ambiguous?
The ambiguity is resolved in favor of the insured
BThe ambiguity is resolved in favor of the insurer who drafted the policy
CThe ambiguous clause is automatically severed from the contract
DThe contract is voided in full and premiums refunded
Why this is the answer
A contract of adhesion is one drafted by one party and offered to the other on a take-it-or-leave-it basis, with no meaningful negotiation. Insurance policies fit this description: the insurer drafts the form, files it with the regulator, and presents it to the applicant who cannot negotiate the wording. Because of this imbalance, courts apply the rule of 'contra proferentem' — ambiguities are construed against the drafter, which means in favor of the insured. The insured did not write the language and should not bear the burden of unclear wording. Per the Florida Agent's Health & Life Exam Content Outline §III.D.2.c.
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