Under California Insurance Code Section 10270.2, blanket insurance is characterized by:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10270.2 defines blanket insurance as coverage for specified circumstances that insures by description all or nearly all persons within a defined class — students, campers, sports participants, passengers, volunteers — under a policy issued to a master policyholder, without naming each covered person or issuing individual certificates. Permitted master policyholders include schools, sports teams and camps, common carriers, and entertainment production companies. The statute also provides that blanket policies must not be marketed as substitutes for ACA-compliant health coverage.
Why the other options are wrong
- B) Blanket insurance covers the class by description and does not individually underwrite or name each covered person — individual underwriting would defeat the blanket form. The class is insured by description, not by person.
- C) Section 10270.2 contains no automatic conversion feature; conversion rights are a separate group-contract concept (such as the conversion right in group life policies). Conversion rights belong to other group contract forms.
- D) The permitted classes are broad — schools, camps, sports teams, carriers, and similar groups — not limited to corporate employees. The permitted master-policyholder classes go well beyond corporate employees alone.
Memory hook
Blanket = the whole class under one umbrella, no names on the policy. Schools, camps, and buses, not corporate rosters only.