State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 381, the requirement that a policy specify the subject matter is satisfied in a health insurance policy by identifying:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 381(b) requires a policy to specify the property or life insured — the subject matter of the contract. In a health policy, the subject matter is the insured person whose life or health is covered, since the risk insured relates directly to that individual's health condition and wellbeing. This subject-matter specification works with the other required items — parties, interest, risks, period, and premium — to make the contract complete.
Why the other options are wrong
- B) The insurer's headquarters address is an administrative detail, not the subject matter of the insurance contract.
- C) The agent's license number is a licensing record matter, unrelated to the statutory subject-matter requirement.
- D) The premium payment mode is a billing feature, not the subject matter insured under Section 381(b).
Memory hook
Subject matter = the life/health that is on the line. In health insurance, that is the named person.