Property Insurance FundamentalsQuestion 141 of 158
Which statement BEST describes how an open peril (special form) policy treats the burden of proof for a covered loss?
a.The insured must prove the loss was caused by a peril listed in the policy
b.The insurer must prove that an exclusion applies in order to deny coverage
c.Neither party has any burden because all losses are presumed covered
d.The burden of proof is shared 50/50 between the insured and insurer
Explanation
Open peril (special form) policies cover ALL causes of loss EXCEPT those specifically excluded. The burden therefore shifts to the insurer to identify and prove an applicable exclusion. Named peril policies, by contrast, put the burden on the insured to show the loss came from a listed peril.
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