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State RegulationsCA specificVerified · outline & fact-checked · Sep 2026Difficulty 3/5

A California policy states the parties, the subject matter, the insured's interest, the risks insured against, and the premium — but says nothing about the period during which coverage continues. Under Section 381, this policy:

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Section 381 makes the period of coverage one of the six items every policy must specify — without it, the contract has no defined duration and violates California law. The statute is mandatory and applies to all insurance policies, including health and accident coverages. A policy omitting a required specification is incomplete and legally deficient, even though every other provision is present.

Why the other options are wrong

  • B) The period is one of the six mandatory specifications, not optional.
  • C) No statute silently writes a one-year term into a policy that omits the period; the omission is a defect, not a default.
  • D) Section 381 applies to all insurance policies, and the period requirement is not limited to property coverages.

Memory hook

No period = no duration = no valid policy. Section 381 demands a start, a finish, or the deal fails.

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