On September 14, 2012, California Assembly Bill 2084, relating to Blanket Insurance Policies, was signed into law. The measure will become effective on January 1, 2013. The new law modernizes outdated provisions of the California Blanket Insurance Policy Law, which limited the classes of persons who could be covered by blanket insurance. Click here for a copy of AB 2084, as of September 14, 2012.

The new law revises and expands the list of eligible policyholders who can purchase blanket insurance to include:

  • Governmental fire departments;
  • Emergency medical services;
  • Volunteer or governmental organizations providing emergency medical or similar types of services;
  • Sports teams, camps and their proprietors;
  • An employer or a majority of employees (or both), in the context of unemployment compensation disability insurance;
  • Employers for matters “incident to activities or operations of the policyholder”; and
  • Entertainment production companies.

The new law also requires that blanket insurance be sold by admitted insurers, and that policies be approved by the Insurance Commissioner. In addition, it gives the Commissioner discretion to add to the list of types of coverages and entities.

Blanket insurance is a form of insurance that provides coverage for a class of persons/insureds by reference to a description of that class, without specifically naming that person/insured. It allows for coverage of participants in certain organizations designated by the legislature, when the identities of those participants are not specifically known to the organization in advance, or, if known, the identities of the participants are constantly changing.