Effect theory

Term · Insurance and risk management · MLC-T-INS-001259

A minority approach to deciding how many occurrences a liability loss involves, under which the number is counted from the effects on injured parties, so each separate injury or claimant can be its own occurrence. Most courts instead apply the cause theory, which counts by the underlying cause, and a single cause produces one occurrence subject to one per-occurrence limit.

Table 1. Record
Identifier	MLC-T-INS-001259
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-001259",
  "term": "Effect theory",
  "field": "Insurance and risk management",
  "definition": "A minority approach to deciding how many occurrences a liability loss involves, under which the number is counted from the effects on injured parties, so each separate injury or claimant can be its own occurrence. Most courts instead apply the cause theory, which counts by the underlying cause, and a single cause produces one occurrence subject to one per-occurrence limit.",
  "url": "https://mlchart.com/terminology/insurance/effect-theory/"
}

Record 1,084 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.