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      Question

      In case of ambiguity in policy wording, which rule is

      applied?
      A Utmost good faith Correct Answer Incorrect Answer
      B Contra proferentem Correct Answer Incorrect Answer
      C Fraudulent intent rule Correct Answer Incorrect Answer
      D Principle of indemnity Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Explanation : The rule of "contra proferentem" is applied, which means any ambiguity in the policy wording will be interpreted against the insurer who drafted the policy.

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