State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
How do CIC §22 and §250 work together in defining the scope of insurance in California?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 22 supplies the definition of insurance itself — a contract to indemnify against loss, damage, or liability from a contingent or unknown event. Section 250 then specifies which events may be the subject of insurance: any contingent or unknown event, past or future, that may damnify a person having an insurable interest or create a liability against that person. Read together, they establish that an insurance contract must fit the Section 22 definition and that its subject event must satisfy Section 250.
Why the other options are wrong
- B) Section 250 does not repeal or replace Section 22; both remain in effect and complement each other.
- C) Both sections apply to insurance generally, including life, health, and property lines; neither is limited to one line.
- D) Both sections apply to individual as well as group contracts; neither is limited to group insurance.
Memory hook
Section 22 names the contract; Section 250 names the events. Two keys to the same lock.