Eric's property was damaged in an accident. He phoned his agent to see if the loss was covered under his property insurance policy.

Eric's property was damaged in an accident. He phoned his agent to see if the loss was covered under his property insurance policy. The agent said, "As long as the cause of loss is not specifically excluded in the policy, the loss is covered." Based on the agent's answer, what type of insuring agreement appears in the policy?

Extended-perils coverage

Named-perils coverage

Unconditional coverage

"All-risks" coverage

Expert Solution

D. All-risks coverage

Based on agent's answer, the insuring agreement appears in the policy is All-risks coverage. It provides much broader protection than named risks coverage which covers only specific events risks which are listed. So, this type of insurance coverage is more costly. This type of coverage makes it insurer's responsibility to prove that claim is not covered and not the other way around.

jeff jeffy answered 1 year ago

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Question

Eric's property was damaged in an accident. He phoned his agent to see if the loss was covered under his property insurance policy.

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Expert Solution

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