State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An applicant believes a medical condition may already exist but has not yet been diagnosed. Under California Insurance Code Section 250, this event:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 250 states that any contingent or unknown event, whether past or future, that may damnify a person having an insurable interest may be insured against. The controlling element is the insured's knowledge: an event that has already occurred but is still unknown to the insured is 'unknown' within the statute's meaning and can be the subject of insurance. This is why known conditions at application are treated differently — once the applicant knows the fact, the event is no longer unknown and concealment rules apply.
Why the other options are wrong
- B) The statute expressly includes past events, so coverage is not limited to events that arise after the policy is issued.
- C) If the applicant knows the condition exists, the event is no longer unknown, and such known facts are not insurable events.
- D) The statute turns on whether the event is contingent or unknown, not on paying an extra premium.
Memory hook
Section 250 cares about your knowledge, not the calendar. Unknown past events can still be insured.