Question

All risk contracts typically state that insurance is against ___. A. Named perils only

B. Specific perils mentioned in the contract
C. All perils except those excluded
D. Natural disasters only

Answer 1

All risk insurance contracts cover all perils except those explicitly excluded in policy documents. These are broader than named peril policies and typically exclude risks like war and nuclear hazards.

Step-by-step explanation:

All risk contracts in insurance policies typically state that insurance is against Option C. All perils except those excluded. This kind of policy is broader than one that covers only named perils or specific perils. Instead, it provides coverage for all losses that are not specifically excluded in the policy documents. Common exclusions can include things like war, nuclear hazards, and intentional acts committed by the policyholder.