Washington State Insurance Practice Exam

A consequential loss is also known as an indirect loss. This type of loss results from a direct loss and is not the immediate result of the damage itself. Instead, it is a consequence of the direct loss. In insurance terms, consequential loss coverage typically covers financial losses that occur as a consequence of physical damage or loss. This can include things like lost income or additional expenses incurred due to the direct loss. The other options are not correct in this context: - Direct loss refers to the immediate physical loss or damage that occurs. - Concurrent loss is not the term used for a consequential loss. Concurrent loss typically refers to multiple losses that happen at the same time. - Primary loss is not the term used to describe a consequential loss.