CMFAS CGI Fire & Commercial Property Insurance question: compared with a named-perils policy

CMFAS CGIFire & Commercial Property Insurance

A fortuitous loss occurs that does not fit neatly within any single named peril. How does an all-risks form respond compared with a named-perils policy?

A It denies the claim, exactly as a named-perils policy would when no peril fits
B It requires the insured to identify one specific listed peril before it will pay out
C It still responds, as gaps between named perils vanish unless the loss is excluded
D It voids the whole policy, because the cause of the loss cannot be identified

Show the answer and explanation

Answer: C. It still responds, as gaps between named perils vanish unless the loss is excluded

All-risks cover means accidental, unforeseen damage is covered unless excluded, so the gaps that exist between separately named perils disappear and the insured need not fit the loss to a named peril.

Common mistake

Applying named-perils gap problems to an all-risks form.

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CMFAS CGI Fire & Commercial Property Insurance question: compared with a named-perils policy

Answer: C. It still responds, as gaps between named perils vanish unless the loss is excluded

Common mistake

Related CMFAS CGI questions

CMFAS CGI Fire & Commercial Property Insurance question: compared with a named-perils policy

Answer: C. It still responds, as gaps between named perils vanish unless the loss is excluded

Common mistake

Related CMFAS CGI questions