State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A school district purchases a life insurance policy covering all students on a field trip without issuing individual certificates to each student. Under California Insurance Code Section 10270.2, this type of coverage is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Blanket insurance (CIC Section 10270.2) covers a group of persons defined by a common activity, event, or status, such as students on a field trip, members of a sports team, or volunteers, without requiring individual certificates or individual applications. Because the group is defined by an activity rather than individual underwriting, blanket insurance is a simple way to cover temporary or incidental groups.
Why the other options are wrong
- B) Credit life insurance pays the balance of a specific loan or debt if the debtor dies; it is not activity-based group coverage.
- C) Franchise (worksite) insurance covers employees of a common employer, but members receive certificates and enrollment is employer-based, not an incidental activity group.
- D) Key person insurance is a business-owned individual policy protecting against the death of a key employee, not a group of incidental participants.
Memory hook
Blanket insurance wraps everyone in a group activity, students, teams, volunteers; no certificates, no fuss.