Under CIC §10202.5, which persons may be insured under a group life policy issued to an employer?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC §10202.5 provides that employees for group life purposes may include officers, managers, and employees for compensation of the policyholder, employees of subsidiary or affiliated corporations controlled by the policyholder, and classes of former employees including retirees. No person other than those described may be insured under the group policy. This ensures the group exists for a genuine purpose other than obtaining insurance, which is a core requirement of valid group coverage under California law. The statute defines the boundary of who can be included in the insured group.
Why the other options are wrong
- B) The public cannot join an employer's group plan; membership is tied to the employment relationship with the policyholder. Only persons in the defined employment categories may be insured, and eligibility ends when that relationship ends.
- C) The employer's family members are covered only if they otherwise qualify as employees or officers, not by virtue of family relationship. The statute defines eligibility by employment status, not by kinship.
- D) Independent contractors without an employment relationship are generally not covered by the group policy. The statute confines coverage to officers, managers, and employees for compensation and certain former employees.
Memory hook
Group life covers the payroll—employees, officers, and retirees—not random strangers on the street.