State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Which of the following is NOT among the specifications that CIC §381 requires a policy to contain?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC §381 requires a policy to specify: (a) the parties between whom the contract is made; (b) the property or life insured; (c) the interest of the insured if not the absolute owner; (d) the risks insured against; (e) the period during which the insurance continues; and (f) the premium, or if the exact premium is determinable only at termination, the basis and rates for determining it. The agent's commission is a business arrangement between the insurer and its producer; it is not a required policy specification.
Why the other options are wrong
- B) The parties to the contract are a required specification under Section 381(a).
- C) The risks insured against must be stated under Section 381(d).
- D) The period of coverage is required under Section 381(e).
Memory hook
Six items on the policy list — parties, subject, interest, risks, period, premium. Commission isn't on it.