Overview
Proximate cause is a crucial concept in insurance that helps determine the validity of claims. It refers to the primary event that leads to a loss, establishing a direct link between the cause and the resulting damage. Understanding proximate cause is essential for both insurers and policyholders, a...
Key Terms
Example: The causation between a car accident and the resulting damage.
Example: A driver may have liability for damages caused in an accident.
Example: Flood damage may be excluded from a standard homeowner's policy.
Example: An adjuster performs a claim assessment after a fire incident.
Example: The policyholder is entitled to file a claim for covered losses.
Example: Insurance provides indemnity to cover the cost of repairs.
Related Topics
Key Concepts
CausationInsurance ClaimsLoss AssessmentLegal Implications