Question

Which of the following policies does not cover all losses unless specifically excluded?

a. special coverage
b. all-risks
c. open perils
d. named perils

Answer 1

The named perils, option d policy does not cover all losses unless specifically excluded, unlike all-risks and open perils policies that cover all losses unless specifically excluded.

Step-by-step explanation:

The policy that does not cover all losses unless specifically excluded is the named perils policy. This type of policy only covers the risks that are specifically listed in the policy. If a loss occurs that is not included in the list of named perils, it will not be covered.

For example, if a named perils policy lists fire and theft as covered perils, but a student's property is damaged by a flood, the policy will not cover the loss. The damage would need to be caused by one of the named perils to be eligible for coverage.

In contrast, policies like all-risks or open perils insurance cover all losses unless they are specifically excluded. Under these policies, covered perils would typically include fire, theft, flooding, and other common risks.