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Which statement best explains Proximate cause?

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Question ID #27084 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 6 Medium

Which statement best explains Proximate cause?

Correct Answer: B. Dominant effective cause used to determine whether a loss falls within policy coverage
Proximate cause: Dominant effective cause used to determine whether a loss falls within policy coverage

Question: Which statement best explains Proximate cause?

A. Insurance purchased by an insurer to transfer part of its own risk

B. Dominant effective cause used to determine whether a loss falls within policy coverage

C. Change in behavior or risk arising because protection from loss exists

D. Non-life insurance such as motor, fire, marine and health categories

Correct Answer: B. Dominant effective cause used to determine whether a loss falls within policy coverageProximate cause: Dominant effective cause used to determine whether a loss falls within policy coverage

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Which statement best explains Proximate cause? - MCQ Explanation

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Correct answer: B. Dominant effective cause used to determine whether a loss falls within policy coverage