The court found that the insurance agency tried to interpret executive and political acts as those
not including ordinary arrests in the exceptions of the FCS clause , and claims that the War
Clauses now included executive and political acts without including ordinary arrests in the new
stipulation.
A strained interpretation which is unnatural and forced, as to lead to an absurd conclusion or to
render the policy nonsensical, should, by all means, be avoided.
2. Indemnity and liability insurance policies are construed in accordance with the general rule of
resolving any ambiguity therein in favor of the insured, where the contract or policy is prepared
by the insurer. A contract of insurance, being a contract of adhesion, means that any ambiguity
should be resolved against the insurer