Blanket life insurance is best described as coverage that:
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Answer & full 3-part explanation (select an option above, or peek)
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.