State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California law, which group would generally qualify for group life insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California's group life statutes, chiefly CIC §10202.5 and related sections such as §10270.505, define eligible groups, notably employer-employee groups, union members, and certain creditor, association, or trust groups. The group must be formed for a purpose other than obtaining insurance, and its members must share a genuine common bond. Ten unrelated individuals or an at-large county pool lack the required natural relationship, and a group formed only to buy insurance is not a valid eligible group. Eligibility rules prevent adverse selection.
Why the other options are wrong
- B) Random individuals with no common bond cannot form an eligible group; a legitimate employment or organizational relationship is required.
- C) A broad public pool is not an eligible group under the group life statutes.
- D) The group must exist for purposes other than just buying insurance; otherwise it fails the group definition.
Memory hook
Group life needs a real bond: a workplace, a union, a shared purpose, not ten strangers with a checkbook.