1.8 Construing the Insurance Contract As a Whole

• Jurisdiction: Arizona

An insurance contract will not be treated by the court as a collection of separate unrelated parts. Each part of the contract must be read and interpreted in relation to all other parts of the contract.^[105] The court will strive to give effect to each provision of the contract.^[106] The policy must be read as a whole; the court will strive to give the policy a reasonable and harmonious meaning and effect by blending all policy provisions.^[107]

Any terms or written documents may be incorporated into the policy by reference, and when so incorporated, those terms or additional writings will be enforced as part of the policy.^[108] In construing the policy, the court has considered the policy application,^[109] sales brochure,^[110] endorsements,^[111] riders,^[112] and schedules.^[113] Certificates of insurance provide information as to the policy content and cannot contradict policy terms.^[114] At least one court has found that a policy transmittal letter had to be read in conjunction with the policy language.^[115]

Where the policy does not identify any written documents to be incorporated, or the policy's reference to the attached document is insufficient, the court will not include the document in its construction of the policy.^[116]

Insurance company charters or bylaws cannot be incorporated into the policy unless they are attached to the policy.^[117]

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Notes:

[105]Lawrence v. Beneficial Fire & Cas. Ins. Co., 8 Ariz. App. 155, 444 P.2d 446 (1968); United States Fire Ins. v. Gentile, 147 Ariz. 589, 712 P.2d 436 (Ct. App. 1985); Gilbreath, 141 Ariz. 92, 685 P.2d 729.

A.R.S. Sec. 20-1119 provides: "Every insurance contract shall be construed according to the entirety of its terms and conditions as set forth in the policy and as amplified, extended or modified by any rider, endorsement or application attached to and made a part of the...