CMFAS BCP Principles of Insurance question: unbroken chain of events

CMFAS BCPPrinciples of Insurance

An unbroken chain of events is important to proximate cause because:

A It decides which party must bear the policy excess on the claim
B A new, independent intervening cause can break it and become the proximate cause
C It fixes the sum insured and the basis of settlement for the loss
D It determines the point at which subrogation rights pass from the insured to the insurer

Show the answer and explanation

Answer: B. A new, independent intervening cause can break it and become the proximate cause

If a new, independent cause intervenes and breaks the chain, that new cause becomes the proximate cause of the subsequent damage. Cover then depends on whether THAT cause is insured or excluded, not the original peril.

Practise more BCP Principles of Insurance questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: Principles of Insurance CMFAS BCPpractice questions & mock exams

CMFAS BCP Principles of Insurance question: unbroken chain of events

Answer: B. A new, independent intervening cause can break it and become the proximate cause

Related CMFAS BCP questions

CMFAS BCP Principles of Insurance question: unbroken chain of events

Answer: B. A new, independent intervening cause can break it and become the proximate cause

Related CMFAS BCP questions