A policy that covers all causes of loss except for those specifically excluded is known as what type of policy?

• A. Open Peril (Special) Form
• B. Named Peril Form
• C. Basic Form
• D. Broad Form

Answer: (A)

Open peril coverage, also called a special form, covers all causes of loss except for those that are specifically excluded in the policy. This means virtually any cause of loss is covered unless the contract says otherwise. It contrasts with named peril forms, which only cover perils that are listed in the policy. Basic and Broad Forms are both examples of named-peril coverage, so they insure only the named risks, not losses from unlisted causes. So the best description for a policy that covers all losses unless excluded is open peril (special form) coverage.