Question

What is proximate cause in insurance and how does it apply to non-life insurance claims?

a.

Proximate cause is the immediate event that causes a loss, and it always refers to the last event before a loss.

b.

Proximate cause is the last event that immediately precedes a loss.

c.

Proximate cause is the predominant cause that sets in motion a chain of events leading to a loss, and it may not be the last event before the loss.

d.

Proximate cause is not relevant in insurance.

Posted under IC38 Life Insurance Agent Exam

Answer: (c).Proximate cause is the predominant cause that sets in motion a chain of events leading to a loss, and it may not be the last event before the loss. Explanation:Proximate cause in insurance is the predominant cause that sets in motion a chain of events leading to a loss, and it may not be the last event before the loss.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is proximate cause in insurance and how does it apply to non-life insurance claims?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the definition of proximate cause?

View solution

Q. In what situations does the principle of proximate cause become applicable in insurance?

View solution

Q. What are some examples of losses that may be paid by business under fire insurance policies but cannot be considered proximately caused by fire?

View solution

Q. Mr. Pinto contracted pneumonia as a result of lying on wet ground after a horse riding accident. The pneumonia resulted in death of Mr. Pinto. What is the proximate cause of the death?

View solution

Q. What is the primary principle behind the Principle of Indemnity in non-life insurance policies?

View solution

Q. How does the insurance company determine the indemnity to be paid under the Principle of Indemnity?

View solution

Q. Which of the following is an example of the Principle of Indemnity in action?

View solution

Q. In what situation is the 'Agreed Value' principle adopted in insurance?

View solution

Q. What is "underinsurance" in the context of non-life insurance?

View solution

Q. What is subrogation in the context of insurance?

View solution

Q. When does subrogation occur in insurance contracts?

View solution

Q. How does subrogation prevent the insured from collecting more than the loss?

View solution

Q. When does subrogation typically occur in insurance contracts?

View solution

Q. What is the principle of 'Contribution' in insurance?

View solution

Q. When does the Principle of Contribution apply in insurance contracts?

View solution

Q. If Mr. Srinivas has insured his house with two insurance companies for the full value of Rs. 12 lakhs each and suffers a fire loss of Rs. 3 lakhs, how much can he claim from each of the insurers under the Principle of Contribution?

View solution

Q. Why doesn't the Principle of Contribution apply to Life Insurance?

View solution

Q. Which among the following is an example of coercion?

View solution

Q. Which among the following options cannot be insured by Ramesh?

View solution

Q. What is the significance of the principle of contribution?

View solution
View All MCQs on IC38 Life Insurance Agent Exam

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Human and Cultural Diversity

Explore the rich tapestry of human societies with our Human and Cultural Diversity...

Human Resource Management

Explore the dynamic field of Human Resource Management (HRM) with our dedicated...

Enzyme Technology

Unlock the power of enzymes with our Enzyme Technology category. Explore enzyme...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Basic Electrical Engineering

Master the fundamentals of Electrical Engineering with our specialized category....

Mechanics of Materials

Unlock the principles of Mechanics of Materials with our specialized category. Dive...

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....