Under California law, a group life insurance policy issued to an employer may cover which group of persons?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10202.5 expands who may be insured as employees under a California group life policy: officers, managers, and employees of the policyholder and its subsidiary or affiliated corporations, plus classes of former employees including retired employees. Individual proprietors or partners may be included only if they are actively engaged in the business. The statute limits group coverage to persons connected to the employment relationship, preventing group insurance from being used to cover unrelated persons who have no employment tie to the policyholder.
Why the other options are wrong
- B) Customers have no employment relationship with the policyholder and are not a permitted class under Section 10202.5 of the code.
- C) Relatives of officers are not automatically covered; only persons meeting the statutory employment definitions are eligible.
- D) Independent contractors are not employees under the group life statute unless they fall within the specifically defined employee classes.
Memory hook
Group life in California covers the workplace family: active, former, and retired workers — not shoppers.