What is true of the Broad Causes of Loss form?

The Broad Causes of Loss form provides coverage for losses that are specifically identified in the policy, which means it operates on a "named peril" basis. This means that only the perils explicitly mentioned in the policy are covered. The Broad form typically includes coverage for a wider array of risks compared to basic policies, often including perils such as fire, explosion, theft, and specific weather-related events.

In contrast to an open peril basis, which would cover all risks except those that are explicitly excluded, the "named peril" basis is much more restrictive as it limits coverage to only those specifically listed causes of loss. This distinction is crucial for understanding the level of protection provided by such insurance forms.

Choice B, which mentions losses covered on an open peril basis, does not accurately describe the Broad Causes of Loss, while option C claiming coverage for all risks inaccurately represents the actual limitations inherent in this form. Choice D is also incorrect since the coverage is not limited to specific types of property, but rather applies to losses resulting from specified perils regardless of the type of property, as long as it is covered under the terms of the policy.