In a contract of adhesion, any confusing language would be interpreted in favor of which...

D. The insured is correct. An insurance policy is considered a contract of adhesion because its contractual language is principally drafted by the insurer and presented to the applicant with relatively little ability to negotiate individual provisions. Because the insurer controls the wording, genuinely ambiguous policy language is generally construed against the drafting party and in favor of the insured.

This concept is directly incorporated into the official Hawaiʻi producer examination. The January 2026 Hawaiʻi Life-General Knowledge outline lists “Adhesion” under the unique aspects of an insurance contract, together with conditional, unilateral, and aleatory characteristics.

The rule does not mean that every disagreement over policy wording automatically favors the insured. Clear and unambiguous provisions remain enforceable according to their terms. The principle becomes relevant when policy language is reasonably susceptible to more than one interpretation. Because the insurer prepared that language, the insurer bears the drafting risk associated with ambiguity.

Option B therefore reverses the adhesion principle. Neither an attorney nor the regulatory authority becomes the favored contracting party merely because a provision is confusing. The protection is directed toward the party who did not draft the standardized contract—the insured.

Reference topics: Contract Law; Unique Aspects of Insurance Contracts; Adhesion; Interpretation of Policy Provisions.

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