Los Angeles Claims Adjuster Property and Causality Practice Exam

What type of form specifies only the perils that are explicitly named?

1. Broad Cause of Loss Form

2. Special Cause of Loss Form

3. Basic Cause of Loss Form

4. All Risk Form

The correct answer is: Basic Cause of Loss Form

The Basic Cause of Loss Form is designed to cover only the perils that are explicitly listed within the policy. This means that coverage is limited to the specific risks named in the policy, such as fire, theft, or vandalism, and does not extend to any other perils that may not be mentioned. This makes it crucial for policyholders to understand exactly which risks are covered since any peril not specifically named would not be included in their coverage. In contrast, the other forms like the Broad Cause of Loss Form and the Special Cause of Loss Form provide broader coverage by including additional named perils or even covering all risks except those specifically excluded. An All Risk Form is typically the most comprehensive, indicating that most perils are covered unless specifically excluded in the policy terms.