State RegulationsMI specificDifficulty 1/5
Under Michigan law, a blanket insurance policy is best described as a policy that does which of the following?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.701 and the Chapter 34 blanket provisions (M.C.L. 500.3402d through 500.3402g) of the Michigan Insurance Code govern blanket coverage, which is built for groups whose membership changes constantly, such as passengers, students, or employees in transit. Individual identities and headcounts are not fixed at issue, so no person is named or individually enrolled when the policy is issued. The practical consequence is that transient and fluctuating groups can be covered efficiently without individual underwriting of each member.
Why the other options are wrong
- A) This describes individually underwritten insurance, the opposite of blanket coverage, which exists precisely because underwriting each member is impractical.
- C) No Michigan authority extends blanket policies to all residents of a municipality; that confuses blanket coverage with statewide or compulsory programs.
- D) Blanket describes the structure of the insured group, not a product that bundles life and accident coverage for a household.
Memory hook
Blanket covers bodies, not names.