What does ambiguity principle mean?

ambiguity principle meaning in Law Dictionary

In insurance a rule that words should be clear and prefer the the firm. The insured doesn't have input in the contract.

ambiguity principle meaning in Business Dictionary

Insurance business guideline that if the terms of, or words in, an insurance plan try not to carry a definite meaning then meaning which goes contrary to the insurance firm (plus in favor of the insured) prevails. The reason being insurance coverage is an adhesion contract the insured had no input in establishing the regards to the insurance policy.