If a policy is written with unclear definitions, conditions and provisions which are hidden in the contract, and the insured files a law suit. In the court of law, the contract would be construed in favor of the insured because it is a:

Contract of adhesion.

Explanation:

If a policy is written with unclear definitions, conditions and provisions which are hidden in the contract, and the insured files a law suit. In the court of law, the contract would be construed in favor of the insured because it is a contract of adhesion.

A contract of adhesion is generally referred to as, a boilerplate contract or standard form contract. It's typically a contract drafted and offered by a party and accepted and signed by another. (usually one with weaker bargaining power, usually a consumer in need of goods or services).

Under the contract of adhesion, contracts comprises of standard terms and conditions which are usually drafted by the business entity with a stronger bargaining power to a client that primarily has a weaker bargaining power and ability to negotiate for appropriately favorable terms or conditions. A contract of adhesion is mainly used by businesses that offer services such as mortgage, deeds, insurance, property lease, hire purchase, car sales etc.

For instance, if a policy is written with unclear definitions, conditions and provisions which are hidden in the contract, these constitutes an ambiguity; In the court of law, when the insured files a law suit, the contract would be construed in favor of the insured and against the insurance company (insurer).

commercial banking

provide online payment services

provide online banking

asset management firms

invest in people's funds in securities

accept tax return refunds

answer; institution;