The insured event must be specified, . the event cannot be a general protection against adverse deviations from targets, but must be explicitly or implicitly described in the contract. Where the contract provides an option to extend cover, this will only qualify as insurance risk at the start of the contract if the contract specifies the terms of the extended cover. The probability that the option will be exercised is taken into consideration when assessing the significance of the future insurance risk. Some fixed–fee service contracts, where the extent of the services provided depends on an uncertain event, may also qualify as insurance contracts. Prior to the issuance of.
