State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
Under CIC Section 250, an event that occurred in the past may be the subject of insurance only if it is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 250 expressly states that the insured event may be past or future, as long as it is contingent or unknown. The point is that insurance addresses uncertainty: if a past event's consequences are still unknown or contingent, it can be insured; once the outcome is certain and known, there is no risk left to transfer. This distinguishes insurance from a mere settlement or indemnity for a settled loss.
Why the other options are wrong
- B) A fully known and documented past event leaves no uncertainty and is not an insurable contingency.
- C) A certain, scheduled event is not contingent and cannot be the subject of insurance.
- D) Speculative risks involve a chance of gain and fall outside the insurable pure-risk framework.
Memory hook
Past but still unknown is insurable; past and settled is just a bill.