Blanket insurance, as defined in California Insurance Code Section 10270.2, is best described as coverage that:

Why B is correct

Under CIC Section 10270.2, blanket insurance covers specified circumstances and insures by description all or nearly all persons within a class defined in a policy issued to a master policyholder, for example students of a school, campers, or members of a sports team. Because the class is described rather than enumerated, individual names and individual certificates are not required, although a statement of coverage may be given to eligible persons. This is what distinguishes blanket insurance from group insurance, which identifies covered persons by certificate.

Why the other options are wrong

• C) Naming each person and issuing individual certificates is characteristic of group insurance, not blanket insurance. Naming each covered person and issuing individual certificates describes ordinary group insurance, whereas blanket insurance covers the class by description without individual naming.
• D) Blanket insurance has no individual underwriting; it covers a described class as a whole. Individual underwriting of each member contradicts the blanket concept, which extends the same class-based coverage to all members without individual risk selection.
• A) Blanket policies are not built on a one-year employment requirement; eligible classes include students, campers, and athletes. An employment-duration requirement is a policy design choice and is not a defining element of blanket insurance under Section 10270.2.

Memory hook

Blanket covers the crowd by description, students, campers, teams: no names, no certificates.

Why A is correct

Under California Insurance Code Section 10270.2, blanket insurance covers a specified class of persons by description rather than by naming each insured, with the policy issued to a master policyholder such as a school, sports team, camp, or volunteer fire department. Individuals are covered because they fall within the defined class and the covered activity, and no individual certificate of enrollment is required. This makes blanket coverage efficient for groups where members change frequently.

Why the other options are wrong

• B) Individual medical expense insurance is underwritten and issued to a named person, not to a class described in a master arrangement.
• C) A health savings account is a tax-advantaged savings vehicle, not a form of group insurance coverage.
• D) A self-funded association plan is prohibited in California for group medical purposes and is not how school blanket coverage works.

Memory hook

Blanket covers a class by description: students, campers, teams — no name-by-name enrollment needed.