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State RegulationsCA specificVerified · outline & fact-checked · Sep 2026Difficulty 1/5

Under California Insurance Code Section 250, an 'insurable event' is:

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Section 250 defines an insurable event as any contingent or unknown event, whether past or future, which may damnify (financially harm) a person having an insurable interest. The event must be uncertain and capable of producing financial loss. This statutory definition is the gateway test for what may be insured in California, and it applies across property, liability, life, and accident and health coverages.

Why the other options are wrong

  • B) An event that has already occurred and caused a known loss is no longer contingent or unknown and is not an insurable event.
  • C) Illness and disability are insurable events; the statute is not limited to accidents.
  • D) The applicant's list is irrelevant; the event must meet the statutory test of being contingent or unknown and capable of damnifying the insured.

Memory hook

Section 250: uncertain event + possible financial harm + insurable interest = insurable event.

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