Blanket insurance, as defined in California Insurance Code Section 10270.2, is best described as coverage that:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under CIC Section 10270.2, blanket insurance covers specified circumstances and insures by description all or nearly all persons within a class defined in a policy issued to a master policyholder, for example students of a school, campers, or members of a sports team. Because the class is described rather than enumerated, individual names and individual certificates are not required, although a statement of coverage may be given to eligible persons. This is what distinguishes blanket insurance from group insurance, which identifies covered persons by certificate.
Why the other options are wrong
- C) Naming each person and issuing individual certificates is characteristic of group insurance, not blanket insurance. Naming each covered person and issuing individual certificates describes ordinary group insurance, whereas blanket insurance covers the class by description without individual naming.
- D) Blanket insurance has no individual underwriting; it covers a described class as a whole. Individual underwriting of each member contradicts the blanket concept, which extends the same class-based coverage to all members without individual risk selection.
- A) Blanket policies are not built on a one-year employment requirement; eligible classes include students, campers, and athletes. An employment-duration requirement is a policy design choice and is not a defining element of blanket insurance under Section 10270.2.
Memory hook
Blanket covers the crowd by description, students, campers, teams: no names, no certificates.