West Virginia Property and Casualty Licensing Practice Exam

What type of cause of loss form provides coverage for all risks, also known as an open peril form?

1. Basic cause of loss form

2. Broad cause of loss form

3. Special cause of loss form

4. Comprehensive cause of loss form

The correct answer is: Special cause of loss form

The correct answer is the special cause of loss form, which is designed to provide coverage for all risks, often referred to as an open peril form. This means that it covers losses due to any cause that is not specifically excluded in the policy. In contrast to basic and broad cause of loss forms, which only cover specific perils, the special form aims to offer a more comprehensive level of protection by including a wider range of risks. For instance, if an insured property experiences damage due to an unforeseen event that isn't listed as an exclusion, the special cause of loss form would typically cover that loss. This form is beneficial for policyholders who want extensive protection, as it minimizes gaps in coverage that could arise from using forms tied to specific perils.