P&CIllinoismedium
Section 2 of the Illinois Insurance Code defines 'insurance' as a contract by which one party, for a consideration, undertakes to:
AGuarantee investment returns on a deposit
Indemnify another or pay a specified amount upon determinable contingencies
CProvide consumer credit at a regulated interest rate
DInsure all profits and losses of a business venture without limits
Why this is the answer
Section 2 of the Illinois Insurance Code provides the statutory definition of insurance. The four essential elements are: (1) a contract, (2) consideration (typically premium), (3) an undertaking to indemnify or pay a specified amount, and (4) determinable contingencies — fortuitous events whose occurrence is uncertain. This definition distinguishes insurance from warranties, service contracts, financial guarantees, and investment products. The 'determinable contingencies' requirement reflects the principle that insurance transfers risk of fortuitous loss, not certain or business losses.
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