In the example where an earthquake breaks a gas main that leads to a fire, which event is the proximate cause of the loss?

In the example where an earthquake breaks a gas main that leads to a fire, which event is the proximate cause of the loss?

• A. The fire
• B. The gas main break
• C. The earthquake
• D. The insurance company

Answer: (C)

Proximate cause is the initiating event that sets in motion the chain of events leading to a loss. In this scenario, the earthquake starts the sequence by causing the gas main to break, which then leads to a fire. Without the earthquake, the gas main wouldn’t break and the fire wouldn’t occur. So the earthquake is the proximate cause because it is the primary event that started the chain producing the loss. The gas main break is an intermediate step, and the fire is the resulting damage, not the initiating cause. The insurance company itself isn’t a cause.

Proximate cause is the initiating event that sets in motion the chain of events leading to a loss. In this scenario, the earthquake starts the sequence by causing the gas main to break, which then leads to a fire. Without the earthquake, the gas main wouldn’t break and the fire wouldn’t occur. So the earthquake is the proximate cause because it is the primary event that started the chain producing the loss. The gas main break is an intermediate step, and the fire is the resulting damage, not the initiating cause. The insurance company itself isn’t a cause.