Section 2.9 Ambiguity in Insurance Contracts

• Library: Contracts 2016 Supp

B. (§2.9) Ambiguity in Insurance Contracts

Ambiguity frequently arises in the context of contracts for insurance. As a result, an entire body of law has arisen on the subject of insurance policy ambiguity. See, e.g., Todd v. Mo. United Sch. Ins. Council, 223 S.W.3d 156 (Mo. banc 2007). The Supreme Court of Missouri has clearly stated that whether an insurance policy is ambiguous is a question of law. See Gulf Ins. Co. v. Noble Broad.,
936 S.W.2d 810, 813 (Mo. banc 1997). The provisions of an insurance policy are ambiguous when, because of duplicity, indistinctness, or uncertainty in the meaning of the words used, the policy is reasonably open to different constructions. See Krombach v. Mayflower Ins. Co., Ltd., 827 S.W.2d 208, 210 (Mo. banc 1992).

“When there is ambiguity in an insurance policy, the Court
must interpret the policy in favor of the...