According to California Insurance Code, which of the following MUST be specified in an insurance contract?
A. Insurer financial rating.
B. Policy exclusions.
C. Additional overages.
D. Risks insured against.
Answer (2)
In California, an insurance contract must specify the risks insured against, outlining the events covered by the policy. This clarity is essential for both the insurer and policyholder to understand their rights and responsibilities. While other aspects like exclusions or additional coverages are important, they are not legally required in the contract itself.
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In California, an insurance contract must specify the risks insured against , as this defines the perils covered by the insurer. While aspects like policy exclusions and insurer financial ratings are relevant, they are not legally required to be outlined in the contract itself. The clarity provided by stating risks is crucial for both parties' understanding of the insurance agreement. ;
