State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 250, which of the following events may be insured against?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 250 provides that, subject to the code, any contingent or unknown event that may damnify a person having an insurable interest, or create a liability against that person, may be insured against. The event need not be limited to the policy term or to future events; the key requirements are contingency, the capacity to cause loss or liability, and an insurable interest.
Why the other options are wrong
- B) Section 250 covers contingent or unknown events without limiting them to those certain to occur.
- C) Past events may be insured only if still contingent or unknown, not when fully known and settled.
- D) Intentionally caused events are not contingent and are not insurable.
Memory hook
Section 250: any contingent, unknown, damnifying event — as long as interest exists.