State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California law, which group size classification is correct for health insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California defines a small group as 2-100 employees and a large group as 101 or more (CIC Sections 10270.5, 10270.505, 10270.55, and 10270.57). The 2-100/101+ boundary is California-specific — many states use 50 as the cutoff — which makes this a favorite CA exam number.
Why the other options are wrong
- B) 1-25/26+ matches no standard California classification; even sole proprietors are treated specially, and the 101+ threshold for large group is well established.
- C) 2-50/51+ is the federal/state boundary used in many other states and by some federal programs, but California's statutory line is 100.
- D) California classifies groups by employee count, not by premium volume.
Memory hook
California counts to 100 before a group gets 'large.' 2-100 small, 101+ large — remember the extra zero.