Which type of insurance is designed to cover a group of people without individually identifying or enrolling each person at the time the policy is issued?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Blanket insurance under California Insurance Code Section 10270.2 covers a class of people whose individual identities are not known when the policy is issued, such as students, campers, spectators, or participants at an event. Because the group changes constantly and individuals cannot practically be enrolled one by one, the policy covers the described class by definition rather than by name. The master policyholder typically buys the coverage, and covered persons are determined by their status within the described group at the time of a claim. This is a distinctive CA group insurance concept and a frequent exam item.
Why the other options are wrong
- B) A guaranteed issue individual policy still requires an individual application and covers a named person; it is not a blanket class.
- C) A key person disability policy covers a specifically named, essential employee and requires individual underwriting.
- D) A contributory group policy covers identified employees who have enrolled, not an unnamed changing class of people.
Memory hook
Blanket covers the crowd by description, not by name: students, campers, and event-goers in one policy.