State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 10270.5, group disability (health) insurance must be written under a master policy issued to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10270.5 defines group disability insurance as coverage written under a master policy issued to a qualified policyholder — for example, an employer, an association with a constitution and bylaws, a labor union, a governmental unit, or a trustee of a fund. Individual employees receive certificates summarizing benefits under the master policy. The statute is the foundation of California's eligible-group rules and prevents group coverage from being sold to ineligible entities.
Why the other options are wrong
- B) Employees receive certificates, not the master policy; the master policy is issued to the employer or other qualified group policyholder.
- C) Only statutorily defined eligible groups qualify, and associations must be bona fide, organized for purposes other than obtaining insurance.
- D) The agent placing the coverage acts on the insurer's behalf; the policy is never issued to the agent.
Memory hook
Group health under §10270.5 must be written under a master policy to a qualified group.