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11 August 2020
In Orders 11092 of 10 June 2020 and 14595 of 9 July 2020, the Supreme Court (Third Division) reiterated certain principles that should be used as guidance for interpreting insurance clauses with a view to ensuring a fair balance between the insured's rights and the insurer's obligations.
In line with the rules on the interpretation of contracts set out in the Civil Code, the Supreme Court reiterated that:
In particular, when interpreting insurance clauses, the courts must:
the individual clauses must be considered in correlation with each other... since the literal meaning of the words must be understood as the entire literal formulation of the negotiating declaration... the judge must link and compare phrases and words in order to clarify their meaning (Order 11092/2020);
In such a context and in light of the product oversight governance rules and IVASS's letter to the market of 18 March 2018 regarding clear and simple contracts, the following will be useful in reconstructing the parties' intention and the scope of the insuring grant:
The Supreme Court orders once again confirm the importance of insurance contracts being drafted with rigor and according to clear and simple criteria in order to limit misinterpretation and possible litigation.
For further information on this topic please contact David Maria Marino or Karin Tayel at DLA Piper Studio Legale Tributario by telephone (+39 02 80 61 81) or email (email@example.com or firstname.lastname@example.org). The DLA Piper Studio Legale Tributario website can be accessed at www.dlapiper.com.
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