State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under CIC Section 10110, which of the following relationships gives a policyowner a valid insurable interest in the life of another person?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10110 provides that every person has an insurable interest in the life and health of: himself or herself; any person upon whom he or she depends wholly or in part for education or support; any person under a legal obligation for the payment of money or respecting property or services; and any person upon whose life an estate or interest vested in the person depends. Financial dependence or obligation is the key; admiration alone is not an insurable interest.
Why the other options are wrong
- B) Admiration without financial or legal dependence is not an insurable interest; insuring a stranger would create a wagering contract.
- C) A former roommate with no current financial dependence has no recognized insurable interest.
- D) A waiver cannot create an insurable interest that does not exist; the statute defines qualifying relationships.
Memory hook
Insurable interest = money, support, or obligation. Admiring someone is not enough to insure them.