Under Maryland's common law, courts interpret ambiguous insurance contracts using traditional contract law principles. In February 2015, Maryland's highest court faced the question of whether to change its method of interpreting insurance contracts to a more pro-policyholder method, contra proferentem. Contra proferentem interprets policy terms strictly against the insurers without reviewing extrinsic evidence. This Comment contends that Maryland courts should continue applying contract law when interpreting ambiguous insurance contracts. This Comment explores cases showing the court's long-standing reliance on contract law principles when interpreting insurance contracts and insurance contract exclusion clauses. Contract law principles best reinforce the court's primary purpose of ascertaining the parties' intent while ensuring adequate protection for insurance consumers. Many courts and commentators also favor contract law principles by noting the benefits to consumers from standardized insurance contracts. From an economic perspective, while jurisdictions that interpret insurance contracts using contract law principles appear preferable over contra proferentem jurisdictions, the argument that contra proferentem significantly increases consumer insurance costs seems unsupported. Maryland courts should continue applying contract law to interpret insurance contracts and permit the state legislature to determine whether contract law or another method of interpretation best advances broader public policy considerations.

In recent years there has been a revival of interest in the philosophical study of contract law. In 1981 Charles Fried claimed that contract law is based on the philosophy of promise and this has generated what is today known as 'the contract and promise debate'. Cutting to the heart of contemporary discussions, this volume brings together leading philosophers, legal theorists, and contract lawyers to debate the philosophical foundations of this area of law. Divided into two parts, the first explores general themes in the contract theory literature, including the philosophy of promising, the nature of contractual obligation, economic accounts of contract law, and the relationship between contract law and moral values such as personal autonomy and distributive justice. The second part uses these philosophical ideas to make progress in doctrinal debates, relating for example to contract interpretation, unfair terms, good faith, vitiating factors, and remedies. Together, the essays provide a picture of the current state of research in this revitalized area of law, and pave the way for future study and debate.

This book provides an authoritative and comprehensive review of all aspects of the law that relate to liability insurance contracts. Taking an international comparative perspective, The Law of Liability Insurance covers all the major types of liability insurance, not just professional indemnity insurance, presenting the issues according to the general principles of contract law. The book begins by concentrating on the fundamentals of the liability insurance contract before moving on to cover conditions, defence, exclusions, and finally claims against and non-payment by the insurer. This book will be an invaluable reference tool for practitioners and professionals working in the commercial liability insurance industry, including those who operate globally, as well as being a source for academics and post-graduate students.