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Proximate Cause refer to the _________ cause which set in motion a chain of events producing loss.

A. Active

B. Efficient

C. A & B are correct

D. None of the above

Answer: Option C

Solution(By Examveda Team)

A related doctrine is the insurance law doctrine of efficient proximate cause. Under this rule, in order to determine whether a loss resulted from a cause covered under an insurance policy, a court looks for the predominant cause which sets into motion the chain of events producing the loss, which may not necessarily be the last event that immediately preceded the loss. Many insurers have attempted to contract around efficient proximate cause through the use of "anti-concurrent causation" (ACC) clauses, under which if a covered cause and a non-covered cause join together to cause a loss, the loss is not covered.

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