A blanket life insurance policy covering members of an organization differs from a regular group life policy in that it:

Why A is correct

Under California Insurance Code Section 10270.2, blanket insurance covers classes of persons, such as members of an organization, passengers of a common carrier, or employees of a group, without individually identifying each person at policy issuance. Coverage applies automatically to anyone who falls within the described class, which simplifies administration for large groups. Blanket policies are frequently used for school, church, and association groups, and for transportation providers. Because the members are not individually identified, no individual underwriting occurs at issue. The master policyowner is responsible for maintaining records of who is covered.

Why the other options are wrong

• Blanket insurance does not require individual underwriting or the identification of each member at the time the policy is issued.
• No separate policies are issued to individual members under a blanket policy; one policy covers the entire class.
• Blanket insurance is not limited to family members; it covers the group or class described in the policy, such as members or passengers.

Memory hook

Blanket insurance covers the crowd by class, not by name — members are covered without being named.

Why A is correct

Section 10270.2 defines blanket insurance as coverage for specified circumstances that insures by description all or nearly all persons within a class defined in a policy issued to a master policyholder, such as students of a school, members of a sports team, or passengers of a common carrier, without specifically naming each covered person. Because coverage attaches by membership in the class, no individual evidence of insurability is required, and the policyholder administers the coverage.

Why the other options are wrong

• B) Blanket insurance covers by class description and does not issue certificates naming each individual.
• C) Blanket policies cover classes like students, athletes, or travelers, not only blood relatives.
• D) No individual underwriting applies because all members of the described class are covered.

Memory hook

Blanket = coverage by class description, not by name. Everyone in the group is in.