State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under California Insurance Code Section 10110, every person is deemed to have an insurable interest in:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10110(a) provides that every person has an insurable interest in the life and health of himself or herself. The statute also recognizes an interest in persons on whom the individual depends for support, persons under a legal obligation to the individual, and persons upon whose life a vested estate or interest depends. The self-interest recognized in subsection (a) is the foundation of every individual health and life policy the person buys on their own life.
Why the other options are wrong
- B) The statute creates insurable interest in oneself and specified connected persons, not in strangers unrelated to the person.
- C) The statute is not limited to employer-employee relationships; it covers self, dependents, and those under legal obligations.
- D) Insurable interest is not universal; the statute requires a defined relationship or obligation, which is precisely what prevents wagering policies.
Memory hook
Section 10110 starts with you: you have an insurable interest in your own life and health, always.