A producer tells a client that their policy covers flood damage, although the policy explicitly excludes it. The client relies on this statement and suffers a flood loss. Which legal concept may allow the client to recover despite the policy exclusion?
Correct
The answer is C: Reasonable expectations
The reasonable expectations doctrine may override policy language if the insurer's representative led the insured to believe coverage existed. Indemnity refers to restoring the insured to pre-loss condition, subrogation is the insurer's right to pursue third parties, and coinsurance relates to penalty for underinsurance.
Why not ?
Reviewed in our October 2026 Pennsylvania fact-check.
Show the answer
The answer is C: Reasonable expectations
The reasonable expectations doctrine may override policy language if the insurer's representative led the insured to believe coverage existed. Indemnity refers to restoring the insured to pre-loss condition, subrogation is the insurer's right to pursue third parties, and coinsurance relates to penalty for underinsurance.
Reviewed in our October 2026 Pennsylvania fact-check.
