In insurance terminology, what describes coverage that only pays for perils specifically listed in the policy?

• A. Named Perils
• B. Open Perils
• C. Hazard
• D. Peril

Answer: (A)

Coverage defined by listing the perils covered is called named perils. In this type, the insurer pays only for losses caused by perils that appear on the policy’s list; any loss from a peril not named isn’t covered. This is different from open perils, which covers all risks of physical loss unless specifically excluded. A hazard is a condition that increases risk, and a peril is the actual cause of a loss, not the method of coverage. Therefore, the option describing coverage that only pays for listed perils is named perils.