The California Department of Insurance published a bulletin reminding insurers of the efficient proximate cause doctrine and its relevance to losses caused by the recent wildfires.

The efficient proximate cause doctrine states that when a loss is caused by a combination of a covered and an excluded risk, the loss is covered if the covered risk is the efficient proximate cause. However, the loss is not covered if the covered risk was just a remote cause or if the excluded risk was the efficient proximate cause.

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