Which principle reinforces that ambiguities in insurance contracts should favor the policyholder?

The principle that reinforces the idea that ambiguities in insurance contracts should favor the policyholder is the doctrine of reasonable expectations. This doctrine holds that when an insurance policy language is not clearly defined, the interpretation should lean toward what the average policyholder would reasonably expect from their coverage. This approach helps protect policyholders, especially those who may not have the expertise to fully understand complex legal terminology or risks associated with specific policy stipulations.

In essence, this principle is built on the understanding that insurance contracts are often more favorable to the insurer, who typically drafts the language used in these contracts. Therefore, if there's a disagreement or confusion regarding the policy terms, the interpretation that benefits the policyholder is favored to ensure fairness and equity in the contractual relationship.

This doctrine is significant in the field of insurance because it establishes a balance between the insurer's and the insured's interests, aiming to ensure that policyholders receive the coverage they believed they were purchasing, thus reinforcing consumer trust in insurance practices.