State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A disability policy states that coverage 'continues until cancelled by either party.' Under CIC §381(e), which requires the policy to specify the period during which insurance is to continue, this language is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 381(e) requires the policy to specify the period during which the insurance is to continue. That period can be a stated term — such as one year — or it can be continuous, running until cancelled by either party. Language that makes the duration certain (continues until cancellation) satisfies the requirement because the policy's period is defined and the insured knows how coverage will end. The statute does not demand a fixed calendar date in every policy.
Why the other options are wrong
- B) A definite expiration date is one way to specify the period, but continuous-until-cancelled language also defines the period and satisfies Section 381(e).
- C) Continuous coverage is not limited to group policies; individual policies may also run until cancelled.
- D) The period language is acceptable regardless of renewability status; cancelability is a separate policy feature.
Memory hook
Until cancelled is still a period. The code wants certainty, not necessarily a date on a calendar.