Question 1015 of 303 · California Life-Only Agent Exam

Under California Insurance Code section 250, which kind of event may be insured against?

Exactly one answer is correct.

AAn unknown event that may harm a person with an insurable interest
BAny event that has already occurred and is known to both parties
COnly events that a person is certain to cause for his or her own benefit
DOnly events that affect property owned by a business entity

Show solution

Correct answer to question 1015

A: An unknown event that may harm a person with an insurable interest

Explanation

Section 250 allows insurance against a contingent or unknown event, past or future, that could harm a person with an insurable interest. A known, certain loss is not insurable.

1016What is the purpose of the principle of indemnity?
1017Utmost good faith in an insurance contract means that
1018The main purpose of insurance underwriting is to
1019Adverse selection occurs when
1020Which term describes a possible exposure to loss that a person or business faces?
1021The term insurable interest means that the policyowner

Under California Insurance Code section 250, which kind of event may be insured against?

Correct answer to question 1015

Explanation

More questions: Basic Insurance Concepts and Principles