Unlike life insurance, what must be included in every individual accident and sickness policy for the policy to be valid?

• A. Statutory terms
• B. Cash value
• C. Riders
• D. Premium

Answer: (A)

Statutory terms are mandated by law to appear in every accident and sickness policy. These terms come from the provincial insurance statutes and set the minimum protections and rights for both the insurer and the insured, ensuring the policy meets regulatory standards. Because they are required by statute, they must be included for the policy to be valid, regardless of the insurer’s preferences. The other elements—cash value, riders, and even the timing of premium payments—are not universal legal requirements for validity in the same way; they may be features of some policies but are not the baseline protection that statutes demand.