State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
In a group health insurance policy, the requirement under California Insurance Code Section 381 that a policy specify the parties is satisfied by naming:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under CIC Section 381(a), a policy must specify the parties between whom the contract is made. In group insurance, the master contract is between the insurer and the group policyholder — the employer or association — so naming those two parties satisfies the requirement. Individual employees and dependents receive certificates and are covered under the master contract, but they are not parties to that contract.
Why the other options are wrong
- B) Certificate holders and dependents are covered persons, not parties to the master contract, and need not be individually named as parties.
- C) The insurer is a party, but so is the group policyholder; specifying only the insurer omits a required party.
- D) The Commissioner regulates insurance but is not a party to private insurance contracts.
Memory hook
Group contract parties = insurer + the boss who signs. Employees ride as covered persons, not signers.