6.5.2 Blanket Life Insurance
Blanket life insurance refers to temporary coverage of a specific hazard for a specific group. Insureds are not identified specifically since coverage is temporary. The most common illustration of this type of insurance is the airline industry. Airline companies will typically utilize this type of insurance to cover the passengers on a commercial flight. Of course, there are no individual policies issued to the passengers as they board the plane. And when the flight has ended safely, the coverage is terminated.
Some common policyholders include:
- College, school or its principal, covering students, teachers or employees;
- Religious, recreational or civic organizations, covering its members while participating in specific hazards as part of an activity sponsored by the organization;
-
Employer, covering any group of employees who participate in specified hazards of employment; -
Sports team, covering members while they are participating on the team; - Volunteer fire department, covering its firefighters while participating in specific hazards related to membership (such as fighting fires); and
- Newspapers, covering its carriers.
