CIC §250 provides that any contingent or unknown event that may damnify a person having an insurable interest may be insured 'subject to the provisions of this code.' What does this qualifying phrase mean?

Why A is correct

Section 250 broadly authorizes insurance against any contingent or unknown event that may damnify (financially harm) a person with an insurable interest. The phrase 'subject to the provisions of this code' conditions that authorization on the rest of the Insurance Code: events that the law forbids — such as a wagering arrangement or a contract indemnifying an illegal activity — are not insurable. The statutory scheme, including Section 22's definition and other prohibitions, remains the governing limit.

Why the other options are wrong

• B) Section 250 expressly allows past events that are unknown to the insured; it does not require the event to have already occurred.
• C) Section 250 covers contingent or unknown events; an event certain to occur lacks the uncertainty that insurance requires.
• D) The phrase does not mean every other provision must exclude the event; it means the event must be lawful under the code's requirements.

Memory hook

Section 250 says 'yes' to contingencies — but the rest of the code still sets the rules of the road.