Policy interpretation must be grounded in the actual language of the policy, regardless of the headings and labels created by policy drafters and the generally accepted meanings of those labels. Policy interpretation must be grounded in the actual language of the policy, regardless of the headings and labels created by policy drafters and the generally accepted meanings of those labels. Photo: Dragonstock/Adobe Stock

Insurance policies are meticulously crafted documents outlining the rights, duties, and obligations of both policyholders and insurers. Despite this, the scope of coverage and the interpretation of a policy's terms and conditions often become subjects of disagreement between insurers and policyholders. Despite their unique characteristics, insurance policies are fundamentally contractual agreements subject to the customary rules of contract interpretation.

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