State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Which of the following does NOT create an insurable interest under CIC Section 10110?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A casual acquaintance's health creates no financial dependence, legal obligation, or other recognized relationship, so no insurable interest exists under Section 10110. Insuring the life or health of a stranger would be a wager, which the law forbids. The remaining options are all expressly recognized: monetary obligations, support dependence, and delays in owed performance.
Why the other options are wrong
- B) Section 10110(c) recognizes a person under legal obligation to pay money to the insured.
- C) Section 10110(b) recognizes a person on whom the insured depends for education or support.
- D) Section 10110(c) also covers persons whose death or illness might delay performance owed to the insured.
Memory hook
No dependence, no debt, no interest. A stranger's health is a stranger's business.