What term is used to define the primary cause of resulting losses?

The term used to define the primary cause of resulting losses is "proximate cause." Proximate cause is a legal concept that determines the primary cause that sets a chain of events into motion, leading to a loss. In the context of insurance and adjusting claims, understanding proximate cause is critical because it helps to establish whether the loss is covered under a specific policy.

By identifying the proximate cause, an adjuster can determine the extent to which the insurer is liable for the claim. For example, if a fire caused by faulty wiring leads to the destruction of a building, the proximate cause is the faulty wiring, which directly resulted in the fire and subsequent damage.

The clarity provided by understanding proximate cause is essential for both insurers and insureds. It helps in assessing coverage and the validity of claims based on the circumstances surrounding the loss, ensuring that only relevant and significantly causative events are considered for compensation.