State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under California Insurance Code Section 22, the event that triggers the insurer's obligation under an insurance contract must be:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 22 defines insurance as a contract to indemnify another against loss, damage, or liability arising from a contingent or unknown event. The word 'contingent' means dependent on chance — the event may or may not occur — and 'unknown' means its occurrence is not already certain at the time the contract is formed. This fortuity requirement is what separates genuine insurance from a prearranged payout, and it is the foundation on which the insurer's promise to indemnify rests.
Why the other options are wrong
- B) A certain and scheduled event is a known obligation, not an insurable risk; insurance requires genuine uncertainty about whether and when the event occurs.
- C) A deliberate act of the insured is generally not insurable because the resulting loss would not be fortuitous; intentional losses are excluded from coverage.
- D) An event within the insured's control is not a risk — control defeats the contingency that Section 22 requires.
Memory hook
Contingent or unknown: the event must be a maybe, not a when.