Concurrent Causation
History of the Concurrent Causation Theory
Concurrent Causation is a term referring to two or more events acting at the same time, or in sequence, to cause a loss.
The concept of concurrent causation exclusions in property insurance policies began after a series of California court rulings found that even though the causation of an event, such as earthquake, was clearly excluded from coverage, if another event, e.g. faulty design or maintenance, not excluded, could be found, coverage should be applied. This led to losses being covered, which were originally intended by the insurers to be excluded.
In order to restrict coverage to the intended perils, insurers included concurrent causation exclusions in their policies. However, while solving one problem interpretation of the language in some cases went so far as to deny coverage formerly offered under all risk policies. While several courts have rescinded the concurrent causation doctrine, insurers have not, leaving adjustment of certain losses up to the interpretation of those involved. As a result there has been and continues to be, a number of court cases in many states dealing with the application of causation exclusions.
Causation is the "causal relationship between conduct and result." That is to say that causation provides a means of connecting conduct, complete with actus reus, with the resulting harm or result element. Causation is only applicable where a result has been achieved and therefore is immaterial with regard to inchoate offenses. Wikipedia
This Adjusting Today article, covering the causation issue, reviews the history, application and the future of concurrent causation exclusions in most policies. This discussion should be very useful to those involved in the adjustment of property losses.
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