Asked by Keondra Rouse on Apr 24, 2024
Verified
Courts will always grant reformation of a written insurance policy in order to make it conform to the coverage assumptions of a unilaterally mistaken insured.
Reformation
A court-ordered correction or modification of a written contract to reflect the true intentions of the parties when the contract was mistakenly drafted.
Coverage Assumptions
Speculations or estimations regarding the extent and conditions of insurance policy coverage.
Unilaterally Mistaken
A situation where only one party to an agreement is confused about the terms or subject matter, potentially affecting the validity of the contract.
- Recognize the contexts in which an insurance contract might be annulled or adjusted, and be aware of the reciprocal rights and duties of the parties in these events.
Verified Answer
MC
Mahak ChhajedMay 02, 2024
Final Answer :
False
Explanation :
Although reformation is available in appropriate cases,courts normally presume that the written policy of insurance should be treated as the embodiment of the parties' actual agreement.Reformation is considered an extreme remedy.
Learning Objectives
- Recognize the contexts in which an insurance contract might be annulled or adjusted, and be aware of the reciprocal rights and duties of the parties in these events.