State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A proposed contract promises to pay a fixed benefit on a date certain, five years from issuance, with no reference to any illness, accident, or loss. Under California Insurance Code Section 250, the scheduled payment is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 250 defines insurable events as events whose happening, or whose time of happening, is uncertain. A scheduled payment on a fixed date is certain in both dimensions: it will occur, and the date is known in advance. With no uncertainty in either respect, the event is not an insurable event and the arrangement is a savings-type contract rather than insurance. The definition requires at least one element of uncertainty — in occurrence or in timing.
Why the other options are wrong
- B) The length of the period does not create uncertainty; a fixed date certain remains certain regardless of how far away it is.
- C) The mere fact that money changes hands does not make an event insurable; the uncertainty requirement still controls.
- D) The insured's age is irrelevant to whether an event satisfies the insurable-events definition.
Memory hook
Certain when AND certain that = a savings plan, not an insurable event under Section 250.