What does an insurer mean by the proximate cause of a loss?

The term "proximate cause" in insurance refers to the dominant cause of a loss, which is essentially the primary reason why the loss occurred. This concept is crucial in determining liability and the extent of coverage under an insurance policy.

In the context of insurance, proximate cause allows insurers to ascertain whether a claim is valid, meaning they need to identify what event most directly led to the loss. For example, if a house burned down due to a lightning strike, the lightning strike would be recognized as the proximate cause, as it is the most significant factor that directly resulted in the loss.

The focus on "dominant cause" underscores the importance of establishing a clear link between the cause of the loss and the event covered under the policy, allowing for a fair and accurate assessment of claims. The other options — direct cause, indirect cause, and remote cause — do not accurately capture the essence of proximate cause as understood within the context of insurance, which emphasizes the direct and primary cause rather than less significant contributing factors.