Question 37

An insurance policy must be in writing according to California Insurance Code.

In accordance with California Insurance Code, an insurance policy must be documented in writing to be valid and enforceable.

A) negotiated between the agent and the insured.

While negotiations may occur between the agent and the insured, this is not a requirement under the California Insurance Code for an insurance policy. The focus is on the written nature of the policy rather than the negotiation process.

B) approved by the Insurance Commissioner.

Although certain types of insurance policies may require approval from the Insurance Commissioner, this is not a blanket requirement for all insurance policies under the California Insurance Code. Therefore, this option does not address the necessity of a written policy.

C) economically feasible for the insured.

Economic feasibility is an important consideration for consumers when selecting insurance, but it is not a legal requirement outlined in the California Insurance Code. This option does not pertain to the formal requirements of policy documentation.

D) in writing.

California Insurance Code explicitly states that an insurance policy must be in writing. This ensures clarity and legal enforceability, protecting both the insurer and the insured by providing a tangible record of the terms and conditions agreed upon.

Conclusion

The requirement that an insurance policy must be in writing is fundamental under California Insurance Code, establishing a clear legal framework for the agreement. Other options, while relevant in different contexts, do not fulfill the specific requirement mandated by the law, making option D the only correct choice.