Efficient-Proximate-Cause Doctrine

Efficient-Proximate-Cause Doctrine

Definition

A rule applied in the minority of jurisdictions that allows an insured to recover for a loss resulting from both an excluded and a covered peril if the covered peril was the dominant or most important cause of the loss, meaning the cause that set other causes in motion. A classic example is a volcano eruption causing mudslides. If the policy excludes mudslides but covers volcanoes, the loss is covered in jurisdictions that apply the efficient-proximate-cause rule.

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