What is a primary characteristic of an open peril policy?

An open peril policy is characterized by its broad scope of coverage, as it covers all risks except those specifically excluded in the policy terms. This means that, rather than having a detailed list of covered perils, the policy assumes coverage for everything unless the insurer explicitly states an exclusion. This approach offers a higher degree of protection for the insured since only known risks that are detailed as exceptions will not be covered. This is in contrast to a named peril policy, which only covers risks that are explicitly listed.

By excluding specific risks, such as natural disasters or certain types of property damage, the insurer limits their liability but also defines the scope of what is not covered. The inclusion of limited coverage would also point to a more restrictive type of policy rather than the comprehensive nature of an open peril policy. Therefore, C capturing the essence of broad coverage with exclusions aligns perfectly with the defining characteristic of open peril policies.