Florida Insurance Claims Adjuster License Practice Exam

What is proximate cause in property insurance?

1. The failure to reveal facts

2. Something that causes loss

3. A guarantee by the insured

4. The cause having the most significant impact in bringing about the loss

The correct answer is: The cause having the most significant impact in bringing about the loss

Proximate cause in property insurance refers to the cause that directly and immediately results in the loss or damage of the insured property. Option A is incorrect because the failure to reveal facts is an example of misrepresentation, not proximate cause. Option B is incorrect because while the cause may be something that leads to loss, it is not necessarily the proximate cause. Option C is incorrect because a guarantee by the insured would relate to the insurance policy itself, not the cause of loss. Therefore, option D, the cause having the most significant impact in bringing about the loss, is the most accurate definition of proximate cause in property insurance.