State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under California Insurance Code Section 22, which of the following situations triggers the insurer's indemnity obligation under an accident and health policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 22 requires that the indemnity obligation arise from a contingent or unknown event. In an accident and health policy, the covered sickness or injury is that event: it may or may not occur, and its timing is unknown. The insurer's duty to pay benefits attaches only when the covered contingency actually happens. Paying a premium, signing the policy, and the passage of time create and maintain the contract but do not themselves trigger a payment obligation.
Why the other options are wrong
- B) Paying the premium is consideration that keeps coverage in force; it does not obligate the insurer to pay benefits.
- C) Signing the policy forms the contract; the covered event must still occur for benefits to be payable.
- D) The end of a calendar year is a certain event, not a contingency, and does not create a benefit obligation.
Memory hook
Premium pays, policy binds, but only the contingency (sickness/injury) triggers the check.