Under California's small employer health insurance rules, an insurer must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California's small employer market is governed by guaranteed issue (CIC Sections 10270.91 through 10270.98): an insurer must accept every eligible small group that applies, regardless of the health status or claims history of its employees. Small groups cannot be medically underwritten or turned down for poor health, and the same guarantee applies to renewal. The rule ensures that small businesses can obtain coverage even when their workforce includes people with medical conditions. The rule applies to every eligible small group of 2 to 100 employees in California, and the same non-discrimination standard protects the group's members from being charged higher rates because of health.
Why the other options are wrong
- B) Declining a group for high claims history violates the guaranteed issue requirement for small employers in California.
- C) Small group coverage is issued without employee medical underwriting; no health questionnaires gate the coverage.
- D) California's small group market covers groups of 2 to 100 employees; coverage is not limited to groups of 50 or more.
Memory hook
Guaranteed issue = the insurer's front door is open to every small group. Health history is not a reason to slam it shut.