What could be classified as a specific risk under 'named perils'?

Prepare for the CII Certificate in Insurance exam with questions and flashcards designed to help you understand the key principles of general insurance.

The classification of a specific risk under 'named perils' is accurately represented by the theft of property. In the context of insurance, 'named perils' refer to specific risks or causes of loss that are explicitly listed in an insurance policy. When a policy is designed to cover named perils, it provides protection only against the risks that the policy explicitly specifies.

Theft of property is a clear example of a named peril because it is a defined and specific event that can lead to a loss, and policies that cover this peril provide protection specifically against such incidents.

In contrast, general liability encompasses a broader array of potential risks rather than being a specific event, which does not fit within the named perils category. Business growth and health benefits are also unrelated to specific risks of loss as they represent broader concepts or conditions rather than defined perils that could cause a loss claim under an insurance policy. Therefore, the theft of property aligns perfectly with the concept of specific risks as outlined in named perils within an insurance context.

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