Insurance is a cornerstone of personal and commercial financial planning. In California, insurance is not just a business—it’s a legally regulated contract defined in the California Insurance Code (CIC). This module introduces the legal definitions of insurance and insurable events, ensuring that licensees understand the foundational terms that underpin every insurance transaction.
In law, in this course, and on the exam the symbol § is called the section sign and refers to a specific section or subsection of a statute, regulation, or legal code. When referencing multiple sections, the plural form §§ is used. For example, a citation like CIC §381 is a reference to Section 381 of California Insurance Code.
Learning Objectives
By the end of this module, you will be able to:
Identify examples of insurance as defined in California Insurance Code §22
Understand the legal meaning of “insurable events” under California Insurance Code §250
Recognize practical applications of these concepts in real-life insurance scenarios
Define what constitutes an insurance policy under CIC §380
Identify how concealment, fraud, misrepresentation, representations, warranties, and materiality impact a contract
List the six required specifications of an insurance policy per CIC §381
Explain the legal concept of rescission and when an insurer may rescind a policy
