Washington State Insurance Practice Exam

What kind of loss is referred to as a 'Direct loss'?

1. Accidental loss

2. Consequential loss

3. Financial loss

4. Physical damage to buildings and/or personal property

The correct answer is: Physical damage to buildings and/or personal property

A 'Direct loss' is specifically referring to physical damage to buildings and/or personal property. This type of loss is the immediate result of a covered peril, such as a fire damaging a building or a tree falling on a car. Direct losses are typically covered under property insurance policies. Accidental loss, consequential loss, and financial loss do not fall under the category of 'Direct loss.'