Which term describes the loss to property or person in which a covered peril is the proximate cause of damage or destruction?

The term that best describes the loss to property or a person when a covered peril is the proximate cause of damage or destruction is "direct loss." In insurance terminology, a direct loss refers to damage or loss that results directly from the occurrence of an event or peril that is covered under an insurance policy. For instance, if a fire (which is a covered peril) damages a building, the resultant damage would be classified as a direct loss because it was directly caused by the fire.

Understanding the nuance of this term is crucial for both insurers and policyholders, as it determines how claims are handled and what can be compensated under a policy. Direct losses are typically covered by insurance policies, provided that the peril causing the damage is included in the policy.