Proximate cause is defined as:

Proximate cause is essential in understanding how a loss occurs in the realm of insurance. It is defined as the primary cause that directly leads to a particular outcome or loss without any intervening factors that would sever the connection between the cause and the effect. In this context, an unbroken chain of events signifies that each event in the sequence directly contributes to the subsequent loss without interruption or obstruction.

This is significant in insurance claims because it helps adjusters determine whether a loss is covered under a particular policy based on the cause identified. If it can be established that the loss was a direct result of a clear and continuous chain of events, the policy may provide coverage for the claim. For example, if a storm causes flooding, and that flooding leads to water damage in a house, the storm (as the proximate cause) is directly linked to the loss (the damage), maintaining the continuity necessary for coverage determination.

The other options do not accurately define proximate cause, as they describe various scenarios or legal concepts not directly related to the continuity of cause and effect in relation to loss.