Chapter 6 - Proximate Cause

Question 1

6 - Proximate Cause

1. When considering whether to meet a claim, the insurer asks what two questions?

Answer 1

Is the insurance contract is force?
Was the loss caused by an insured peril?

Question 2

6 - Proximate Cause

A Meaning of Proximate Cause

1. What is the name of the doctrine insurers apply when the cause of a loss is not obvious?

Answer 2

Proximate Cause.

Question 3

6 - Proximate Cause

A Meaning of Proximate Cause

2. What do insurers first look at to establish the proximate cause of the loss?

Answer 3

The relationship between the peril and the loss.

Question 4

6 - Proximate Cause

A Meaning of Proximate Cause

3. What do insurers do once they establish the peril that caused the loss?

Answer 4

Decide whether the cause is insured before paying the claim.

Question 5

6 - Proximate Cause

A Meaning of Proximate Cause

4. What is a Proximate Cause?

Answer 5

The active, efficient cause that sets in motion a train of events which brings about a result, without the intervention of any force started and working actively from a new and independent source.

Question 6

A Meaning of Proximate Cause

A2 Nature of Perils

1. How are perils classified?

Answer 6

Insured Perils - name in the policy

Excluded Perils - named in the policy as specifically not covered

Uninsured Perils - not mentioned in the policy at all

Question 7

A Meaning of Proximate Cause

A2 Nature of Perils

2. When is it necessary to find the proximate cause?

Answer 7

Only where the events before the loss are not all insured perils.

Question 8

A Meaning of Proximate Cause

A3 Application to Simple Claims

1. What should be applied to simple claims when establishing proximate cause.

Answer 8

Common sense.

Question 9

C - Modification by Policy Wording

1. Are war risks covered if they are remote or incidental?

Answer 9

Yes.

Question 10

C - Modification by Policy Wording

2. Are Nuclear risk covered?

Answer 10

No, even if remote or incidental