Fortuity

Every Insurance Claim Must Be Fortuitous

Because the purpose of insurance is to protect insureds against unknown, or fortuitous, risks, fortuity is an inherent requirement of all insurance policies that take on the risk of loss accepted by the policy. [Two Pesos, Inc. v. Gulf Ins. Co., 901 S.W. 2d 495, 502 (Tex. App. Houston [14th Dist.] 1995, no writ)]. The fortuity doctrine precludes coverage for both a “known loss” and a “loss in progress.” A “known loss” is a loss the insured knew had occurred prior to making the insurance contract.[1]