Washington State Insurance Practice Exam

What is the definition of proximate cause in insurance?

1. An act or event that naturally and reasonably foresees damage or bodily harm

2. Any cause listed in the insurance policy

3. Acts of nature such as storms and earthquakes

4. The direct cause of an insured event without which the event would not have occurred

The correct answer is: An act or event that naturally and reasonably foresees damage or bodily harm

The correct answer is A: An act or event that naturally and reasonably foresees damage or bodily harm. Proximate cause in insurance refers to the primary cause of a loss or damage that sets in motion a chain of events leading to the loss. It is essential to determine the proximate cause to assess liability and coverage under an insurance policy accurately. Options B, C, and D are incorrect: B. Any cause listed in the insurance policy - This is inaccurate as the proximate cause is not just any cause listed in the policy but specifically pertains to the primary cause of the loss. C. Acts of nature such as storms and earthquakes - While acts of nature can sometimes be proximate causes of certain losses, proximate cause is not limited to natural events and can also include human acts or negligence. D. The direct cause of an insured event without which the event would not have occurred - This option misconstrues the concept of proximate cause by defining it as the direct cause when it actually refers to the primary cause in a chain of events leading to a loss.