How is proximate cause defined in insurance?

Proximate cause is defined as the immediate reason for a loss that is covered by an insurance policy. This principle is central to determining whether a claim is valid under the terms of the policy. When a loss occurs, insurers assess whether the loss was a direct result of a covered peril.

Choosing the first answer highlights the importance of identifying the primary or direct cause that leads to a loss claim, thus linking the insured event to the policy coverage. This way, the concept of proximate cause ensures clarity in what is insured and prevents claims for losses that may not be connected to the specific risks covered in the policy.

The other options delve into causes in a way that does not align with how proximate cause operates. A minor cause contributing does not adequately reflect the immediacy or direct impact necessary to meet the proximate cause standard. Similarly, designating something as any secondary cause dilutes the focus on the immediate chain of events leading to the loss, making it less relevant to the definition. Lastly, regarding a circumstance that increases risk falls outside of proximate cause since it does not directly relate to the cause of the loss itself, but rather to the overall risk profile. Understanding these distinctions helps in grasping the necessity of reviewing the cause of