State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 250, which statement correctly describes what may be insured against?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Section 250 broadly permits insurance against any contingent or unknown event — whether past or future — that may damage a person having an insurable interest or create a liability against them, subject to other provisions of the Insurance Code. This is why both property risks and liability risks are insurable. The event must be contingent or unknown; it need not be limited to future occurrences, and it is not restricted to property damage.
Why the other options are wrong
- A) Section 250 explicitly includes past events as insurable; the event need not have already occurred and may be future.
- B) The event must be contingent or unknown, not certain; a certain event lacks the uncertainty insurance requires.
- D) The statute covers events that damage the insured OR create liability against them, so liability events are included.
Memory hook
Insurable events = anything contingent and unknown that can hurt you or make you owe.