Consumer activist J. Robert Hunter has called on insurance commissioners to repeal the clause that permits carriers to deny claims for covered losses if uncovered events cause damage at the same time.
The anti-concurrent causation clause is used to override coverage for a claim from a covered cause such as wind, when at about the same time an uncovered event--such as flood--damages a property.
"Consumers cannot be expected to understand how this clause works, and will always be shocked to learn that their coverage has been trumped by the occurrence of some other type of claim," wrote Mr. Hunter, insurance director of the Consumer Federation of America.
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