Under California Insurance Code Section 10270.2, which of the following is a permissible form of blanket disability insurance?
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Why A is correct
CIC Section 10270.2(a)(3) expressly permits blanket disability insurance issued to a sports team, camp, sponsor, or proprietor, covering participants, campers, employees, officials, and volunteers for accidental injury — and, under the statute, certain sickness benefits — arising during team- or camp-sponsored activities. Blanket insurance covers a described class by definition rather than by naming each individual, and it is issued without individual underwriting. The statute enumerates the permissible blanket policyholder categories — volunteer fire departments, schools, sports teams, newspapers, religious and civic organizations, and common carriers among them — and sports teams and camps are squarely within the list.
Why the other options are wrong
- B) Payroll-deduction individual policies are ordinary group or individual coverage, not the class-by-description blanket model defined in Section 10270.2, so this describes a different insurance structure.
- C) Blanket insurance is issued without individual underwriting; member-by-member medical underwriting is the opposite of the blanket approach and belongs to standard individual or group products.
- D) Coercing coverage as a condition of credit approval is not a permitted blanket category under Section 10270.2, so this answer describes a practice the statute does not authorize.
Memory hook
Blanket insurance covers the whole class by description — the team, the camp, the school — no names, no underwriting.