General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A health insurance policy is an adhesion contract. If a policy provision is ambiguous, the ambiguity will generally be interpreted:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
An adhesion contract is drafted entirely by one party, the insurer, and offered to the insured on a take-it-or-leave-it basis. Because the insured had no hand in drafting the language, any ambiguity is resolved against the insurer, the party that wrote the policy. This rule protects the insured, who has little bargaining power over the wording of the policy, and it is a standard principle applied when policy language is unclear.
Why the other options are wrong
- A) The rule favors the insured, not the drafter; the insurer created the ambiguity and bears the risk.
- B) Oral statements may be relevant in some circumstances, but the ambiguity rule concerns the written text itself.
- C) Ambiguities are construed, not manufactured into new terms.
Memory hook
The drafter writes it, and the drafter owns the ambiguity.