Question

If a court ordered a payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept?

1) Indemnity
2) Reasonable expectations
3) Cease and desist
4) Nonforfeiture

Answer 1

If a court ordered a payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of reasonable expectations.

Step-by-step explanation:

If a court ordered a payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of reasonable expectations. This legal concept suggests that insurance policies should be interpreted in a way that is consistent with what a reasonable person would expect from the policy. In this case, the insured person might reasonably expect that losses would be covered based on the wording of the policy, even if they are not specifically listed as covered.