A difference between a contract issued on a "named peril" basis versus an "open peril" or "all-risk" basis is:
A) the "named peril" contract usually covers more perils
B) the "named peril" contract is usually more expensive than the "open peril" contract
C) in the "named peril" contract the insured must prove the peril is covered where in the "open peril" contract the burden of proof is on the insurer to show no coverage
D) in the "open peril" or "all risk" contract there are no exclusions to loss

Question

Quizplus · Accepted Answer

In a "named peril" contract, the insured must prove that the peril causing the loss is covered by the contract. In contrast, in an "open peril" or "all-risk" contract, the burden of proof is on the insurer to show that a particular peril is not covered.

A Difference Between a Contract Issued on a "Named Peril