State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 10110, which of the following persons has an insurable interest in the life of another?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10110 gives a person an insurable interest in the life of anyone on whom he or she depends wholly or in part for education or support. A parent supported by a child's income falls squarely into this category. The statute also recognizes an interest in a person under a legal obligation to pay money or perform services whose death might delay performance, and in a person upon whose life a vested estate or interest depends. Insurable interest must exist at the time the policy is issued; without it the contract would be a wagering agreement.
Why the other options are wrong
- B) A casual acquaintance has no economic or legal connection to the insured, so no insurable interest exists under the statutory categories.
- C) Admiration creates no financial dependency, legal obligation, or estate interest, and therefore no insurable interest.
- D) Grief or emotional attachment is not a recognized basis; Section 10110 requires support, obligation, or dependency.
Memory hook
Insurable interest = money on the line. Support, debt, or estate dependency count; feelings do not.