The cause having the most significant impact in bringing about the loss when two or more independent perils occur concurrently is called ...

• A. Peril
• B. Hazard
• C. Proximate Cause
• D. Warranty

Answer: (C)

The main idea here is proximate cause—the primary event in a chain of events that leads to a loss. When two independent perils occur at the same time, the one that has the most significant impact in producing the damage is the proximate cause. Insurance uses this to decide coverage: the loss is tied to the proximate cause, not every contributing peril, so if that dominant cause is a covered peril (and there are no policy exclusions), the claim is covered. Perils are the actual risks that can cause damage; hazards are conditions that increase the chance of a loss; warranties are contractual promises or conditions in a policy. In this scenario, proximate cause best explains why one cause is identified as the driving factor in bringing about the loss.