Which term refers to an insurance policy that insures against events that cause bodily injury and property damage but excludes certain named perils?

• A. All-risk policy
• B. Named peril policy
• C. Open peril policy
• D. Comprehensive policy

Answer: (B)

The term that accurately describes an insurance policy which protects against bodily injury and property damage while excluding specific, named perils is known as a named peril policy. This type of policy outlines in detail the specific events or situations that are covered, such as fire, theft, or vandalism. If an incident occurs that is not listed within the policy, coverage for that incident is not provided.

This contrasts with an all-risk policy and an open peril policy, both of which cover a wide range of risks unless specifically excluded. A comprehensive policy is typically associated with broader coverage but may not specifically delineate what perils are included or excluded. Hence, the defining characteristic of a named peril policy is its emphasis on and limitation to those risks expressly mentioned in the policy language.