Concept:Insurance operates on established principles, and identifying the nearest or direct cause of a loss is one of them.
Explanation:The principles of insurance include utmost good faith, insurable interest, indemnity, subrogation, and proximate cause.
Proximate cause refers to the active, direct cause of a loss or damage.
It determines whether the loss actually resulted from an insured risk or peril.
If the closest cause of the loss is not an insured peril, the insurer may not pay the claim.
Therefore, proximate cause is a key principle of insurance.
Answer:A. Proximate cause.