What is the relationship between peril and proximate cause in insurance?

The correct choice highlights that proximate causes can indeed stem from covered perils in insurance. In the context of insurance, a peril is essentially a specific risk or cause of loss, such as fire, theft, or collision. When an insurance policy details what perils are covered, it establishes the risks that the insurer is willing to cover.

Proximate cause, on the other hand, refers to the primary cause that directly leads to the loss or damage. In many cases, the losses or damages that an insured party claims are the result of a sequence of events that begin with a peril. For example, if a fire (a peril) damages a building, the proximate cause of the damage is the fire itself.

Understanding the interaction between these two concepts is crucial in the claims process, as it determines whether the loss falls under the umbrella of coverage. The identification of a peril helps clarify the situation, while determining the proximate cause allows assessors to connect the event leading to the loss with what is defined in the policy.

In this context, the correct answer underscores that proximate causes can arise from perils that are insured, reinforcing the idea that insurance coverage is often triggered by the presence of specific recognized risks.