State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under California Insurance Code Section 381, an insurance policy must specify the parties between whom the contract is made. In an individual health policy, this requirement is satisfied by naming:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 381 lists the six specifications every policy must contain, and the first is 'the parties between whom the contract is made.' In an individual health policy, the contracting parties are the insurance company (the insurer) and the policyowner or insured. Identifying the parties fixes who owes what to whom and makes the contract's obligations enforceable. Naming the agent, physicians, or a beneficiary is not what the parties specification requires.
Why the other options are wrong
- B) The producer is a representative of the insurer and is not itself a party to the insurance contract.
- C) Physicians and hospitals are providers, not parties to the contract between insurer and insured.
- D) Beneficiary designation is a separate feature of life insurance and certain policies; Section 381 does not require a beneficiary in every policy.
Memory hook
The contract's label reads 'Company and Client' — those are the parties Section 381 wants in writing.