Definition of Concurrent causation:
A loss brought about by at least two events. In recent years, concurrent causation has been controversial as one event may be covered but the other not covered.
In insurance, concurrent causation happens when a property experiences a loss from two separate causes when one has policy coverage, and the other does not. Depending on the specific situations, the type of policy in effect, and the state court in which disagreements will be heard, the damages from both causes are likely to be covered. Concurrent causation may also be a factor in liability insurance policies. .
Concurrent causation is a method used in insurance claims for handling losses or damages that occur from more than one cause. The roots of concurrent causation stem from court rulings and opinions, which form a body of legal precedent, which becomes useful when parties in a dispute require the decision of a court.
How to use Concurrent causation in a sentence?
- Many insurance policies today contain anti-concurrent causation (ACC) clauses that protect an insurer from paying out the same claim more than once, but which can be detrimental to some policyholders.
- Concurrent causation refers to identifying a loss that results from multiple causes; for instance, a windstorm that causes roof damage that also leads to rainwater damage, which in turn cases mold.
- While common in property and casualty policies, ACC clauses are also found in liability insurance policies.
Meaning of Concurrent causation & Concurrent causation Definition