A group life policy may NOT insure groups consisting exclusively of persons who are related by marriage, blood, or legal adoption. Which option reflects this rule when identifying such a group?

• A. A group consisting exclusively of persons related by marriage, blood, or legal adoption.
• B. A group of coworkers within the same employer.
• C. A group of students not connected by employment.
• D. A group of customers under contract with the company.

Answer: (C)

The main idea is that group life policies require a common bond beyond mere family ties; you can’t insure a group that consists exclusively of people who are related by blood, marriage, or legal adoption. That kind of family-only group is the type this rule disallows.

So the option that reflects this rule is the one describing a group made up only of relatives. That shows the exact scenario the rule targets—a group with no non-family bond and thus not eligible for a group life policy.

Other examples illustrate valid group bonds: coworkers within the same employer share an employment connection, and groups formed for a specific contractual or association purpose also have a legitimate bond. A group of students not connected by employment could lack a sponsor or common bond, which is why it wouldn’t fit the typical group life structure, but the key point remains that exclusive family relationships are the disallowed type.