Which statement correctly describes the relationship among All Perils, Comprehensive, and Specified Perils forms?

Which statement correctly describes the relationship among All Perils, Comprehensive, and Specified Perils forms?

• A. All Perils equals Comprehensive coverage only
• B. All Perils equals a combination of comprehensive and specified perils
• C. All Perils equals Specified Perils coverage only
• D. All Perils excludes theft

Answer: (B)

All Perils combines the protection offered by comprehensive coverage with the protection offered by specified (named) perils. Comprehensive covers a wide range of risks except those explicitly excluded, while Specified Perils covers only the perils named in the policy. When you have All Perils, you’re insured against both the broad set of risks and the named risks, effectively a superset of the two forms. This is why the correct statement is that All Perils equals a combination of comprehensive and specified perils. Theft is typically included under All Perils unless it is specifically excluded, so saying All Perils excludes theft would be incorrect.

All Perils combines the protection offered by comprehensive coverage with the protection offered by specified (named) perils. Comprehensive covers a wide range of risks except those explicitly excluded, while Specified Perils covers only the perils named in the policy. When you have All Perils, you’re insured against both the broad set of risks and the named risks, effectively a superset of the two forms. This is why the correct statement is that All Perils equals a combination of comprehensive and specified perils. Theft is typically included under All Perils unless it is specifically excluded, so saying All Perils excludes theft would be incorrect.