Which concept states that the reasonable expectations of policy owners will be honored?

The concept of "Reasonable Expectations" signifies that insurance policies are expected to be interpreted in a way that aligns with the reasonable expectations of the policyholder. This principle holds that if a policyholder believes that a certain coverage is included in their insurance based on the policy language or marketing materials, then the insurer should honor that understanding, even if the policy language may lack explicit clarity.

This principle serves to protect policyholders by ensuring that their legitimate expectations about coverage are fulfilled, thereby promoting fairness in insurance transactions. It recognizes that many policyholders may not have a deep understanding of complex insurance language and should not be penalized for that lack of knowledge.

On the other hand, concepts such as estoppel, fraud, and waiver address different legal scenarios in insurance. Estoppel prevents a party from taking a different position than what was previously established, fraud involves intentionally deceptive practices, and waiver refers to the voluntary relinquishment of a known right. While these concepts play important roles in insurance law, they do not specifically pertain to honoring the reasonable expectations of policy owners, which is the essential aspect of the concept acknowledged in this question.