State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Which item is NOT one of the elements a California insurance policy must specify under CIC Section 381?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 381 requires six items: the parties, the property or life insured, the insured's interest (if not the absolute owner), the risks insured against, the period of coverage, and the premium or the basis for determining it. A financial strength rating is published by rating agencies and is marketing information; California law does not require it to appear in the policy. The rating is never a statutory policy element.
Why the other options are wrong
- B) The parties to the contract are the first required element of Section 381.
- C) The risks insured against are a mandatory element under Section 381(d).
- D) The period during which insurance continues is required under Section 381(e).
Memory hook
381's six-pack: parties, property/life, interest, risks, period, premium. Ratings are marketing, not requirements.