Under California Insurance Code §381, which of the following is one of the six items a policy must specify?
Correct
The answer is D: A statement of the premium, or its basis and rates.
Insurance Code §381 says a policy must specify the parties between whom the contract is made; the property or life insured; the insured's interest in the property, if the insured is not the absolute owner; the risks insured against; the period during which the insurance continues; and either a statement of the premium or, if the exact premium can be determined only at the end of the contract, the basis and rates for figuring it. A social security number, a producer's errors and omissions policy number and a list of prior claims are not among them.
Why not ?
Reviewed in our October 2026 California fact-check.
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The answer is D: A statement of the premium, or its basis and rates.
Insurance Code §381 says a policy must specify the parties between whom the contract is made; the property or life insured; the insured's interest in the property, if the insured is not the absolute owner; the risks insured against; the period during which the insurance continues; and either a statement of the premium or, if the exact premium can be determined only at the end of the contract, the basis and rates for figuring it. A social security number, a producer's errors and omissions policy number and a list of prior claims are not among them.
Reviewed in our October 2026 California fact-check.
