State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 10110, a person has an insurable interest in the life and health of:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10110 lists the persons in whose life and health an individual has an insurable interest: the individual's own life and health, any person on whom the individual depends wholly or in part for education or support, any person under a legal obligation to pay money or render services that illness could delay, and any person on whose life an estate or interest depends. Dependence for support is the classic example.
Why the other options are wrong
- B) Admiration of a public figure creates no financial dependence and therefore no insurable interest.
- C) A competitor's health does not create a loss for the insured and is not a recognized interest.
- D) Sharing a city implies no dependence and no insurable interest under Section 10110.
Memory hook
Insurable interest = someone whose illness would hurt your wallet. Support, debt, dependence.