The Unfavorable Interpretation Principle And Its Application In The Insurance Contract

The unfavorable interpretation principle is specified an important law construction principle of the Insurance law of the People’s Republic of China. It implies vital significance in realizing equality and justice. On one hand, it constrains the insurers from franchise right abuse; it also has positive effects in preventing morality risk, and implementing the principle of utmost good faith.On the other hand, the unfavorable interpretation principle has caused many inequality and injustice problems in its implementation. This mainly comes from a confused definition in our legislation, and the lack of concrete regulations in the applications of the unfavorable interpretation principle. But in general, the unfavorable interpretation principle is of positive meaning, if actively probes into its theory and applications, its results will make great significance to our juridical practice.This article studied the unfavorable interpretation principle and its applications. It comprises five sections:The first is introduction, it explains the motivations and methodologies of this article, generalizes various theories on the unfavorable interpretation principle of researchers from both China and other countries. The second part states the creation, development, and theoretical basis of the unfavorable interpretation principle. Many scholars hold a mutual attitude toward the unfavorable interpretation principle, this article is in accordance to this view, that is, restrictions must be applied in the explanations of the unfavorable interpretation principle. The third section states the common interpretation principle of contract law and specified interpretation principle of insurance law. In this article, the author disagrees the inferiority of the unfavorable interpretation principle, but instead confirms its priority; such prior consideration is decided by the process of law interpreting thoughts. The fourth section analyses the differences between ambiguity and controversy, enumerates different applications of an insurance contract The fifths section is the "conclusion", it sums up viewpoints in each chapter as well as the general of the whole. The unfavorable interpretation principle should be comprehended correctly, and applied proper.