What is the term for an insurance policy that covers loss from a specific event or peril?

What is the term for an insurance policy that covers loss from a specific event or peril?

• A. Comprehensive policy
• B. General policy
• C. Named peril policy
• D. Exclusion policy

Answer: (C)

The term for an insurance policy that specifically covers loss from a designated event or peril is known as a named peril policy. This type of policy explicitly lists the events or perils that are covered, providing clarity to the policyholder about what risks are insured. It contrasts with broader types of coverage, such as comprehensive policies, which may cover various risks without being limited to those that are specifically named. The specificity of a named peril policy allows policyholders to understand exactly what risks they are protected against, which can help in evaluating their insurance needs and ensuring appropriate coverage is in place for the specific threats they may face.

The term for an insurance policy that specifically covers loss from a designated event or peril is known as a named peril policy. This type of policy explicitly lists the events or perils that are covered, providing clarity to the policyholder about what risks are insured. It contrasts with broader types of coverage, such as comprehensive policies, which may cover various risks without being limited to those that are specifically named. The specificity of a named peril policy allows policyholders to understand exactly what risks they are protected against, which can help in evaluating their insurance needs and ensuring appropriate coverage is in place for the specific threats they may face.