A Detroit transit company wants accident coverage that automatically applies to the passengers riding its buses from day to day, without enrolling any rider individually. Which Michigan arrangement fits this need?

Why D is correct

Blanket policies under M.C.L. 500.701 and M.C.L. 500.3402d through 500.3402g of the Michigan Insurance Code are designed exactly for this fact pattern: persons whose number and identity change continually, such as passengers, students, campers, or athletes. Coverage attaches automatically to whoever is in the covered group on a given day, with no individual enrollment or application. The transit company, as the head of the group, holds the master policy while riders are covered as fluctuating members.

Why the other options are wrong

• A) A franchise plan still contemplates identifiable, enrolled participants, which daily-changing bus riders cannot provide.
• B) Open enrollment requires each rider to take enrollment action, defeating the automatic, no-enrollment protection the company needs.
• C) A multiple-employer trust is an arrangement among employers, not a device for covering an ever-changing pool of passengers.

Memory hook

Changing crowds ride under the blanket.