Identifying in an insurance policy the specific perils covered is a(n) _____ approach.
A) no-risk
B) named-peril
C) coinsurance
D) all-risk

Question

Quizplus · Accepted Answer

The named-peril approach identifies specific perils that are covered by the insurance policy, such as fire, theft, and vandalism, while excluding all others. This is in contrast to the all-risk approach, which covers any peril that is not specifically excluded. The coinsurance approach applies to property policies and requires the insured to carry a certain percentage of coverage in relation to the value of the property, or else the insured will be responsible for a portion of any loss. The no-risk approach is not a recognized approach in insurance.

Identifying in an Insurance Policy the Specific Perils Covered Is