Under California Insurance Code Section 380, a policy is defined as:
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
CIC Section 380 states that the written instrument in which a contract of insurance is set forth is the policy. The definition emphasizes that an insurance policy must be in writing, meaning the policy is the document that embodies the insurance contract between the parties. This written-form requirement protects both parties by providing clear evidence of the parties, property or life covered, risks, period, and premium. An oral agreement or a mere premium receipt is not a policy within the meaning of the code, and no binding life insurance coverage arises from words alone.
Why the other options are wrong
- B) Section 380 requires a written instrument; an oral agreement does not constitute a policy under the code.
- C) Only the written instrument sets forth the contract; the application alone or unwritten attachments are not the policy itself.
- D) A premium receipt evidences payment, but it is not the written instrument that contains the contract of insurance.
Memory hook
Section 380: no paper, no policy. The contract only exists inside the written instrument.