Despite the different names applied to the theories — “proximate cause” in English-speaking countries and “adequate causation” in Argentina — and the differing legal traditions of common and civil law of the proponents, the two theories are not necessarily dissimilar. For example, in Flota Mercante Dominicana v. American Manufacturers Mutual Insurance Company, 1970 AMC 1678 (S.D.N.Y. 1970), the court cited the following definition of proximate cause: “the first cause from which the event flows in a natural, almost mechanical and inevitable manner.” This definition bears great conceptual similarity to the Argentine theory of adequate causation. Thus, “proximate cause” and “adequate causation” may lead to similar court decisions as regards coverage.

Contributor:	Domingo M. López Saavedra, López Saavedra Lawyers, Buenos Aires, Argentina
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Two leading German-English business dictionaries — Wilhelm Schäfer’s Wirtschaftswörterbuch and Reinhart von Eichborn’s Der Grosse Eichborn — provide little assistance. Both give “consequential loss” as the English-language equivalent of “Vermögensschaden” when it is used in conjunction with the word “insurance.” Neither contains the term “Vermögensfolgeschaden.”

These two German-language terms have distinct meanings in German insurance. “Vermögensschaden” is used to refer to pure financial loss (“reiner Vermögensschaden”), that is, financial loss that arises in the absence of any bodily injury or property damage. “Vermögensfolgeschaden” describes financial loss following bodily injury or property damage.

Confusion arises because “Vermögensschaden” also can be used as a general term to refer to pure financial loss as well as to financial loss following bodily injury or property damage.

Losses of the “pure financial loss,” or “reiner Vermögensschaden”-type, are insurable only under a separate policy called “Vermögensschaden-Haftpflichtversicherung,” or financial loss liability policy. Such policies are available in the German market for errors and omissions of professional service providers such as attorneys, architects, and consultants. “Vermögensfolgeschaden”-type losses are covered to a very limited extent (for example, in the form of loss of use) under a commercial liability policy, or “Betriebs-Haftpflichtversicherung.”

Contributor:	Thomas Heering, Frenkel & Co., Inc., New York, New York, USA
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In addition to fire (ogien) and extended coverage (pelny zakres), the market offers all risks (ubezpieczenie od wszystkich ryzyk), business interruption (utraty zysku), contractors’ all risk (wszystkich ryzyk budowy), machinery breakdown (uszkodzenia maszyn), and general liability (odpowiedzialnosc cywilna ogolna), among a number of other property/casualty coverages (pokrycie majatkowy/wypadkowy). Almost all coverages available in western markets are now available in Poland as well.

Contributor:	Bob Kruijsse, Aon Poland Ltd., Warsaw, Poland
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RRGs — akin to captive insurance companies — act as the liability insurance carrier for their members. RRGs usually organize as mutuals, stock companies, or reciprocals (also known as reciprocal insurance exchanges, cooperative insurance companies, or interinsurance associations or exchanges). PGs are groups of insurance buyers who purchase their liability coverage from an insurance company.

Contributor:	Karen Cutts, Risk Retention Reporter, Pasadena, California, USA
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Performance bonds have three sets of initials, depending on whether the principal is a building contractor, a service company, or a supplier: SG-EC (seguro garantia do executante construtor) for contractors, SG-EPS (seguro garantia do executante prestador de serviços) for service companies, and SG-EF (seguro garantia do executante fornecedor) for suppliers.

Contributor:	Scott Wickstrom, Chubb Group of Insurance Companies, Warren, New Jersey, USA
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Contributor:	Manuel Santamarina, Estudio Santamarina (Loss Adjusters), Buenos Aires, Argentina
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