What is the term for making unfair discrimination between individuals?

The term "Unfair Discrimination" specifically refers to the practice of treating individuals differently in insurance contexts without a legitimate basis, such as refusing coverage or charging higher premiums based on irrelevant factors like race, gender, or any other characteristic that should not influence insurance risk. This concept is particularly important in the insurance industry, where regulations are in place to ensure fairness and equity among policyholders.

While "Discrimination" could be interpreted broadly to include both fair and unfair practices, "Unfair Discrimination" distinctly emphasizes the illegitimacy of the practice when it occurs without justifiable reasons tied to risk assessment. Bias and prejudice relate to attitudes or beliefs that can lead to unfair discrimination but do not specifically define the action taken within the context of insurance policies. Thus, the term "Unfair Discrimination" accurately captures the essence of making decisions that unjustly differentiate among individuals, highlighting the need for equitable treatment in insurance underwriting and service.