State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under CIC Section 250, which of the following is an insurable event for a medical expense policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
An insurable event under Section 250 is the event whose occurrence or nonoccurrence determines the insurer's liability. For a medical expense policy, the covered illness or injury is the event that triggers the insurer's obligation to pay benefits. Premium payment is the insured's consideration, while license renewal and financial reporting are regulatory matters; none of them determines liability for a claim under the policy.
Why the other options are wrong
- A) Premium payment is the consideration for the contract, not the event that triggers benefit liability.
- C) License renewal affects the producer's authority, not the insurer's obligation on a claim.
- D) The insurer's financial report is a regulatory matter with no relation to an individual claim.
Memory hook
The event that makes the insurer pay is the insurable event.