Proximate Cause and Ensuing Loss Explained

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The efficient proximate cause rule and ensuing loss provisions are concepts that are confusing to many including the courts. This decision provides a good explanation, which will be helpful to insurance claims professionals and attorneys. The court used an analogy to coverage for a fire following an earthquake to explain the concepts.

The court also addressed an issue of first impression, the impact of an insured's violation of an impairment of subrogation provision.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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