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Proximity cause in Insurance.
Title: Proximity cause in Insurance.
Category: Literature / Creative Writing
Details: Words: 511 | Pages: 2.2 (approximately 235 words/page)
Proximity cause in Insurance.
Definition of Proximate Cause:
A proximate cause is the first event in a chain of events that gives rise to a claim. There are two elements required to determine proximate cause:
1) the activity must produce a foreseeable risk
2) the injury must be caused directly by the defendant's negligence
Example:
If a car is driving along and swerves to prevent itself hitting a dog and that then causes damage to a lamp post and five other …showed first 75 words of 511 total…
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…showed last 75 words of 511 total…one is covered and the other is excluded, the whole loss is covered
Conclusion
In spite of the difficulty of forecasting how a court might interpret the proximate cause doctrine in the light of a given set of facts, understanding the requirement of proximate cause is important to insurance policy coverage analysis. An insured event must not only involve a covered cause; a covered cause must also be the proximate cause of a covered consequence.
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