I have a custom React hook as follows:

export function useValidPolicyReference({
  token,
  tenant,
  policyReference,
}: UseValidPolicyReferenceProps): Record<string, boolean> {
  const [isValid, setIsValid] = React.useState<boolean>(true);

  React.useEffect(() => {
    async function fetchOnMount(): Promise<void> {
      try {
        await getPolicyByReference({
          policyReference: policyReference as string,
          tenant,
          token,
        });
      } catch (error) {
        setIsValid(false);
      }
    }
    if (tenant !== '' && policyReference !== null && token !== '') {
      fetchOnMount();
    }
  }, [policyReference, tenant, token]);

  return {
    isValidPolicyReference: isValid,
  };

I want to test that isValidPolicyReference will return true when getPolicyByReference does not throw and false when it does.

My test for the true case is as follows:

  test('should be truthy if the policy reference is valid', () => {
    (getPolicyByReference as jest.Mock).mockImplementationOnce(() =>
      Promise.resolve(true)
    );
    const {
      result: { current },
      waitForNextUpdate,
    } = render();

    expect(current.isValidPolicyReference).toBeTruthy();

    waitForNextUpdate();

    expect(getPolicyByReference).toHaveBeenCalledWith({
      token,
      tenant,
      policyReference,
    });
    expect(current.isValidPolicyReference).toBeTruthy();
  });

Which passes but the test for the false case does not:

  test('should be falsy if the policy reference is invalid', () => {
    (getPolicyByReference as jest.Mock).mockImplementationOnce(() =>
      Promise.reject(new Error('policy reference error'))
    );
    const {
      result: { current },
      waitForNextUpdate,
    } = render();

    expect(current.isValidPolicyReference).toBeTruthy();

    waitForNextUpdate();

    expect(current.isValidPolicyReference).toBeFalsy();
  });

It fails on two counts:

1. isValidPolicyReference never returns as false
2. There is also a console.error logged at this line setIsValid(false); where Warning: Can't perform a React state update on an unmounted component.

I am not sure how to get getPolicyByReference to throw in Jest so that the hook will return the false value.

What am I not doing correctly? Should I be wrapping my test cases in async await? Should I mock axios.get instead of getPolicyByReference?