Which statement correctly describes blanket insurance under California Insurance Code Section 10270.2?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Blanket insurance, defined in Section 10270.2, covers specified circumstances and insures by description all or nearly all persons within a class — for example, members of a volunteer fire department, students of a school, or passengers of a common carrier — without specifically naming the covered persons by certificate. A master policy is issued to the organization, and while a statement of coverage may be given to eligible persons, no individual underwriting or certificate is required. Because the class is defined by its activity and relationship, blanket coverage is an efficient way to insure transient or large groups, and the definition is a distinctly California statutory point.
Why the other options are wrong
- B) Blanket coverage is issued without individual applications or medical underwriting of each person.
- C) Blanket insurance is issued to a master policyholder for a class, not to individuals for personal coverage.
- D) Unlike group policies, blanket policies need not name members or deliver individual certificates.
Memory hook
Blanket = one policy covering a whole class by description, nobody named.