Reasonable Expectation Doctrine Trumps Insured’s Duty to Read Insurance Policy

By Steven Plitt | June 10, 2013

  • June 10, 2013 at 3:25 pm
    Gordon says:
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    I will bet no other contract can be suspended because someone did not read it. This is ludicrous.

  • June 10, 2013 at 6:29 pm
    Wesley Todd says:
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    Great article. Thanks for the analysis.

  • June 17, 2013 at 5:18 pm
    Huh! says:
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    Relying on a 17-page fax detailing policy provisions, including exclusions, seems reasonsable in spite of the fact that the final policy included an exclusion that was easy to note and understand. It is reasonable to assume the insurance company made a mistake and that a correction would be made. There are several things that could have been done better, such as the agent pointing out the exclusion at the time the poilcy was delivered — or requesting a policy correction sooner; however, it is universally accepted by many insurance agents and company underwriters that an Insured rarely reads his/her insurance policy. Of course, no where does the article indicate why the vessel sank. The cause of loss could have been something other than wear and tear, in which case the exclusion would have no bearing on the claim.

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