General Insurance PrinciplesQuestion 184 of 716
All of the following are required elements of a valid contract EXCEPT:
a.Offer and acceptance by the parties
b.Written signatures of two witnesses
c.Consideration exchanged by both parties
d.A lawful purpose for the agreement
Explanation
California Civil Code §1550 requires offer/acceptance, consideration, competent parties, and a lawful object. Witness signatures are not required for an insurance contract to be valid.
Law Reference: Cal. Civ. Code §1550This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)