What does Remote Cause mean? Read on to discover the definition & meaning of the term Remote Cause - to help you better understand the language used in insurance policies.
In first-party property cases, a peril that takes place before the proximate cause for example, in sequence of events type situations where one peril is followed by but does not cause a second peril that was unforeseeable at the time the policy was issued. In these kinds of situations, courts hold that the second peril is the superseding cause, and hence, the proximate cause of the loss. Coverage for the loss depends on whether the superseding cause is covered. In this kind of situation, the initial peril that is not selected as the proximate cause is said to be only a remote cause.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
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