Chapter 6 Flashcards
proximate cause
This is when
insurers apply the doctrine of proximate cause
Insured perils
Those named in the policy as covered.
Excepted/excluded perils
Those named in the policy as specifically not covered
Uninsured/unnamed perils
Those perils not mentioned at all in the policy.
The doctrine of proximate cause
can be modified by policy wordings and it is important to check the precise wordings of exclusions in deciding how they impact on any claim
What does Marsden v. City & County Insurance Company tell us to do when determining the proximate cause
Apply common sense by looking at cause and effect.
A shopkeeper insured their window against any loss or damage except that arising from fire. A fire broke out on a neighbouring property causing a crowd to form. This crowd began rioting and broke the window. It was ruled that the loss was covered. It was not inevitable that a crowd would form then riot after the fire and so the damage was not inevitable as a result of the fire. Therefore the fire was not the proximate cause
When is it necessary to establish the proximate cause
When there is more than a single cause and not everything in the chain of events leading to the loss is an insured event
Why is it necessary to establish the proximate cause
To determine if there is coverage under the policy and to determine what excess/deductibles may apply
Name the legal case this definition comes from Proximate cause
Pawsey v. Scottish Union and National (1907
What will the proximate cause of a loss always be?
The dominant cause
When is it necessary to establish the proximate cause?
When there is more than a single cause and not everything in the chain of events leading to the loss is an insured event
