Question

Operating as a veteran insurance agent located in Massachusetts you are reviewing the following situations that relate to open-perils coverage. Which of them is (are) considered to be true?

I. All losses are covered except those losses specifically excluded.

II. The burden of proof is on the insured to prove that a loss is covered.

1. I only

2. II only

3.both I and II

4.neither I nor II

Answer 1

Answer: 1. I only

Explanation:

Open perils covers all losses except those that are specifically excluded. Hence the first statement is true. But under the open-perils coverage, the burden of proof is on the insurance company to prove that a loss is excluded. So the second statement given is wrong and the answer is option 1.