Which statement correctly describes blanket life insurance under California law?

Why A is correct

Blanket life insurance (CIC §10270.2) covers a defined group of persons under one policy based on a common activity, such as a school, sports team, or similar exposure, without requiring that each person be named or receive an individual certificate. The policyholder is typically an organization or sponsoring entity. Because the individuals are exposed to a common risk, blanket coverage is practical where individual identification is impractical. Blanket policies simplify administration and are distinct from group policies that require eligible-group structures and certificates.

Why the other options are wrong

• Blanket insurance specifically avoids naming and individually underwriting each covered person; it covers a class exposed to a common risk. This answer describes a different situation from the one in the question and is therefore incorrect under the facts given here.
• Blanket coverage applies to a group based on a shared activity, not a single family; family coverage is a family policy or rider. This choice does not fit the arrangement described in the question, so it is clearly not the right option to choose.
• Blanket insurance is a group form, not an individual whole life policy; it insures a class of persons under one contract. Accordingly, this option is not correct because it does not match the specific rule or product that is described in the question.

Memory hook

Blanket means one policy, one group, and no name list required.

Why A is correct

Blanket insurance, under CIC §10270.2, provides coverage to a class of persons, such as members of an organization, participants in an event, or students, without individually identifying them at the time the policy is issued and without issuing individual certificates. Because the class is defined by its activity or membership, individual underwriting is unnecessary, and the premium is based on the group as a whole. Blanket coverage is typically used for incidental risks such as athletic teams or volunteer groups. It is not restricted to seniors or to any single marketing channel.

Why the other options are wrong

• B) Blanket insurance is designed to avoid individual underwriting; members are covered by virtue of their class.
• C) Blanket coverage is not age-limited to seniors; it applies to any eligible class of persons.
• D) Blanket insurance may be sold through any distribution channel; the distribution method is not its defining trait.

Memory hook

Blanket = cover the whole class, names optional. The group is defined by what they do together.