Rafe Obtains a Fire Insurance Policy on His Vacation Cabin

Rafe obtains a fire insurance policy on his vacation cabin near Smoky Mountain from Torchlight Insurance Company. The cabin is lost in a fire, but the parties dispute the amount of Torchlight's liability under an ambiguous clause in the policy. A court would most likely

A) ​interpret the clause against Rafe.
B) ​interpret the clause against Torchlight.
C) ​rewrite the clause and apply it as rewritten.
D) ​strike the clause from the policy.

Correct Answer:

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