Which of the following is generally an eligible group for group life insurance under California law?

Why A is correct

California law (CIC §§10202.5, 10270.505, 10270.55, 10270.57) defines eligible groups for group life insurance, and the most fundamental eligible group is the employees of a common employer. Eligibility is based on a genuine common bond, such as employment, membership in an association, or a similar relationship, that reduces adverse selection and makes the risk predictable. Groups formed simply to buy insurance, such as random consumers or strangers pooling premiums, lack the common bond required by law and are not eligible groups.

Why the other options are wrong

• Random purchasers of a product have no common employment or membership bond; such a group is formed solely to obtain insurance and is not eligible. Accordingly, this option is not correct because it does not match the specific rule or product that is described in the question.
• Strangers pooling premiums creates a group whose only purpose is insurance, which violates the common-bond requirement of the eligible-group statutes. This option therefore does not match the facts presented in the question and is not the correct answer to select.
• Sharing only an age bracket, with different occupations and no common relationship, does not create the common bond needed for an eligible group. This answer describes a different situation from the one in the question and is therefore incorrect under the facts given here.

Memory hook

An eligible group needs a real bond, not a buy-in club.