Policy Interpretation Letter

A Policy Interpretation Letter is a document prepared by an insurance company or legal professional that provides an opinion or explanation of how a particular insurance policy should be interpreted or applied in a given situation. The letter typically analyzes the relevant policy language, the facts of the case, and any applicable laws or regulations, and offers a conclusion about whether the policy provides coverage for the claim or loss in question. Policy interpretation letters are often used by insurers and policyholders to clarify ambiguous or disputed policy terms, to respond to coverage denials or reservation of rights letters, or to support legal arguments in insurance litigation.