Which type of insurance policy does NOT characterize specific perils?

Which type of insurance policy does NOT characterize specific perils?

• A. Named Peril Policy
• B. All-Risk Policy
• C. Comprehensive Policy
• D. Direct Damage Policy

Answer: (B)

An All-Risk Policy is designed to provide coverage for a wide range of perils without specifically listing them. This type of policy covers events unless they are explicitly excluded in the policy language. Consequently, it does not characterize specific perils, setting it apart from Named Peril Policies, which only cover specifically listed risks. In contrast, Named Peril Policies detail each peril covered, meaning that any event not explicitly stated is not covered. Comprehensive Policies often refer to a similar concept as All-Risk, typically providing broad coverage as well. Direct Damage Policies usually focus on the physical damage to property rather than categorizing perils comprehensively. Therefore, an All-Risk Policy is distinguished by its non-specific nature regarding a list of covered risks, making it the correct answer in this scenario.

An All-Risk Policy is designed to provide coverage for a wide range of perils without specifically listing them. This type of policy covers events unless they are explicitly excluded in the policy language. Consequently, it does not characterize specific perils, setting it apart from Named Peril Policies, which only cover specifically listed risks.

In contrast, Named Peril Policies detail each peril covered, meaning that any event not explicitly stated is not covered. Comprehensive Policies often refer to a similar concept as All-Risk, typically providing broad coverage as well. Direct Damage Policies usually focus on the physical damage to property rather than categorizing perils comprehensively. Therefore, an All-Risk Policy is distinguished by its non-specific nature regarding a list of covered risks, making it the correct answer in this scenario.