Chapter 6 Flashcards
When a loss occurs, and the insured makes a claim for loss or damage, the insurer decides whether to meet the claim by what two questions?
• Is the insurance contract in force?
• Was the loss caused by an insured peril?
What is the proximate cause?
The dominant cause of a loss
For the first cause to be the proximate cause must the chain be broken or unbroken?
Unbroken
The proximate cause of a loss will always be what?
The dominant cause
Events - Lighting a match in a garage then a rag catches on fire then a gas cylinder explodes then the wall of the garage blows out then the burning materials blow into the office then there is a fire in the office.
What is the proximate cause?
Lighted match in garage
What is an insured peril?
Those named in the policy as covered
What is an excluded peril?
Those named in the policy as specifically not covered
A shopkeeper insured their plate glass shop window against loss or damage arising from
any cause except fire.
Fire broke out in a neighbour’s property and a mob gathered as a result. The mob then
rioted and broke the plate glass. It was held that the riot and not the fire was the cause of
the loss.
Would a claim be paid?
yes because it was not inevitable that a crowd would gather and then riot after the fire and so
the damage was not the inevitable result of the fire.
What is an unnammed or uninsured peril?
Perils not mentioned in the policy
If a loss is caused by an excepted(excluded) peril such as war and the excepted peril is the proximate cause, is the loss covered?
No
If a loss is caused by an uninsured peril sich as water but an insured peril such as fire is the proximate cause, is the loss covered?
Yes
Does the addition of the words “directly and indirectly” broaden or narrow a policy exclusion?
Broaden
Julie has a car accident, sustains mild injuries and requires is injured medical treatment. She is taken to hospital where she dies due to an infection caught at the hospital. What is the proximate cause of her death?
Theinfection
