fairly debatable rule
fairly-debatable rule. 1. Insurance. In some states, a test that requires an insurer to have a plausible basis for denying a claim to avoid bad-faith liability. [Cases: Insurance 3336. C.J.S. Insurance §§ 1163, 1342, 1576, 1578–1581.] 2. Zoning. A doctrine that bars a court from interfering with a zoning decision that is supported by substantial […]
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