What term refers to an action that continuously produces a loss without interruption?

The term that describes an action that continuously produces a loss without interruption is proximate cause. Proximate cause refers to a primary factor or event that directly leads to a loss, which is important in determining liability in insurance claims and legal cases. It establishes a clear link between the cause of an event and the ensuing damages, meaning that the damages were a foreseeable outcome of that specific cause.

When assessing claims, understanding proximate cause is crucial as it helps to determine whether the events leading to financial loss were interconnected and whether those events were predictable outcomes from the actions taken.

The other terms listed do not relate to a continuous loss in the same context. Intervening cause refers to an event that occurs after an initial act and contributes to the outcome but is not the initial cause itself. Contributory negligence pertains to a legal defense where the injured party may have contributed to their own injury, thus affecting the liability. Absolute liability is a legal doctrine where a party is held liable for damages without the need for proving negligence—this does not concern itself with the continuity of loss.