A blanket disability policy under CIC §10270.2 covers persons:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC §10270.2 defines blanket insurance as a form of disability coverage that insures by description all or nearly all persons within a defined class under a policy issued to a master policyholder, rather than by naming the covered persons individually or issuing certificates. Typical blanket arrangements cover students on school trips, sports teams, campers, passengers, or volunteer organizations for accident or sickness benefits tied to defined activities. Because members are identified by their status and the covered activity rather than by name, no individual applications or certificates are required, making A the correct answer under the statute.
Why the other options are wrong
- B) Naming individuals and issuing certificates is the opposite of the blanket concept; blanket coverage attaches to a class described in the master policy without individual identification. The statute expressly defines blanket coverage by class description rather than by individual identification.
- C) Blanket policies do not require individual applications; coverage attaches automatically to persons who fall within the defined class when the covered event occurs. Enrollment attaches automatically to members of the defined class when the insured event occurs.
- D) Blanket policies under CIC §10270.2 provide accident and sickness benefits to defined activity groups, not long-term care services confined to nursing facilities. The permitted classes are activity groups such as students, campers, and teams, not nursing-home residents.
Memory hook
Blanket = the whole class is covered in one stroke: campers, players, and students on the bus.