What is the test for the liberal construction rule in an insurance contract?
MultiRegion, United States of America
The following excerpt is from Flexi-Van Leasing, Inc. v. Aetna Cas. & Sur. Co., 822 F.2d 854 (9th Cir. 1987):
Initially this case confronts the court with the general rule that insurance contracts are to be construed liberally to afford coverage and against the insurer. O'Neill v. Standard Insurance Company, 276 Or. 357, 554 P.2d 997, 999 (1976). Appellees argue that the judgment creditors here are not entitled to the benefit of the liberal construction rule because they are not parties to the policy.
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