State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 381, which required policy specification applies to property insurance but does NOT apply to a life insurance policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 381(c) requires a policy to state the interest of the insured in property insured, if the insured is not the absolute owner. This provision addresses property coverage, where ownership interests can be partial. A life insurance policy has no property interest to describe; it instead must state the parties, the life insured, the risks, the period, and the premium or its basis. The other answer choices are required for life policies.
Why the other options are wrong
- B) Section 381(b) requires the policy to state the life insured; this is essential to a life policy.
- C) The risks insured against are a universal Section 381 requirement for all policies.
- D) The period of coverage is required for every policy, including life insurance.
Memory hook
Section 381's property-interest line is for property, not people. Life policies name a life, not a deed.