General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A health policy covers only losses that are fortuitous. This means the loss must be:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Fortuitous means occurring by chance; the loss must be accidental and unintended. The fortuity requirement is essential to insurance because it prevents insureds from creating losses to collect benefits, which would destroy the mathematical basis of risk pooling. A known or certain event is not an insurable risk, and intentional losses are excluded by public policy and by the language of most policies. Fortuity is therefore a cornerstone of what makes a loss insurable.
Why the other options are wrong
- B) A deliberately caused loss is the opposite of fortuitous and is excluded from coverage.
- C) A loss known to the insurer before issuance would lack contingency and would not be insurable.
- D) A guaranteed loss is a certainty, not a risk, and cannot be the subject of insurance.
Memory hook
Fortuitous means oops by accident, never something done on purpose.