State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under California Insurance Code Section 380, the "policy" is defined as:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Section 380 states: "The written instrument, in which a contract of insurance is set forth, is the policy." This makes the policy the formal written embodiment of the insurance contract. The application may be attached to and made part of the policy by reference, but it is the policy document itself that defines the terms, conditions, and coverages of the contract. Because California requires the insurance contract to be in writing, no oral agreement can serve as the policy.
Why the other options are wrong
- A) An insurance contract must be in writing in California; no oral agreement constitutes the policy.
- C) The application supplies representations and information; it becomes part of the contract but is not itself the policy.
- D) A certificate of authority is the Commissioner's authorization for the insurer to do business, not the policy.
Memory hook
Policy = the written paper that holds the contract. No paper, no policy — no oral insurance in California.