Washington State Insurance Practice Exam

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What kind of loss is referred to as a 'Direct loss'?

  1. Accidental loss

  2. Consequential loss

  3. Financial loss

  4. Physical damage to buildings and/or personal property

The correct answer is: Physical damage to buildings and/or personal property

A 'Direct loss' is specifically referring to physical damage to buildings and/or personal property. This type of loss is the immediate result of a covered peril, such as a fire damaging a building or a tree falling on a car. Direct losses are typically covered under property insurance policies. Accidental loss, consequential loss, and financial loss do not fall under the category of 'Direct loss.'

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