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State RegulationsCA specificVerified · outline & fact-checked · Sep 2026Difficulty 2/5

Under California Insurance Code Section 381, the requirement that a policy specify 'the risks insured against' means the policy must state:

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

Why A is correct

The 'risks insured against' specification identifies the events, occurrences, or perils that obligate the insurer to pay. In accident and health insurance, these are the accidents and sicknesses that produce covered medical expense or disability losses. Stating the covered risks in the policy defines the boundary of coverage and gives the insured clear notice of what is protected — and, by implication, what is excluded. It is one of the six specifications required by Section 381.

Why the other options are wrong

  • B) The premium, or the basis for computing it, is a separate required specification concerning payment, not a statement of covered risks.
  • C) Claims turnaround times are operational service standards, not a description of the risks insured.
  • D) The insured's medical history is underwriting information gathered at application, not a required policy specification.

Memory hook

Risks insured = the 'what we pay for' list: accidents and sickness in A&H.

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