Life & Health · Chapter 2 · Perils, Losses & Hazards
Named (Specified) vs Open (Special) Perils
Definition
Named/specified perils: the policy LISTS what it covers — anything not listed is NOT covered. Open/special perils: the policy covers ALL direct causes of loss EXCEPT those it explicitly excludes.
Example
A cancer-only health policy = named peril. Comprehensive medical or standard life insurance = open peril (pays unless the cause is excluded).
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms