Which practice involves making unfair discrimination between individuals of the same class in insurance?

Which practice involves making unfair discrimination between individuals of the same class in insurance?

• A. Controlled business
• B. Discrimination
• C. Disparagement
• D. Rebating

Answer: (B)

The practice that involves making unfair discrimination between individuals of the same class in insurance is referred to as discrimination. In the insurance context, discrimination occurs when an insurer treats individuals or groups differently based on characteristics that are not relevant to the risk assessment or insurability of their policies. This could involve charging higher premiums or denying coverage based on factors such as race, gender, or other protected attributes, which is against the principles of fairness and equality in insurance underwriting. This understanding is critical in maintaining ethical standards in the insurance industry, where all insured parties should be evaluated on common criteria relevant to risk, ensuring that every individual receives equitable treatment. By recognizing discrimination as an unfair practice, we highlight the importance of nondiscriminatory practices, which help to foster trust and integrity in the insurance system.

The practice that involves making unfair discrimination between individuals of the same class in insurance is referred to as discrimination. In the insurance context, discrimination occurs when an insurer treats individuals or groups differently based on characteristics that are not relevant to the risk assessment or insurability of their policies. This could involve charging higher premiums or denying coverage based on factors such as race, gender, or other protected attributes, which is against the principles of fairness and equality in insurance underwriting.

This understanding is critical in maintaining ethical standards in the insurance industry, where all insured parties should be evaluated on common criteria relevant to risk, ensuring that every individual receives equitable treatment. By recognizing discrimination as an unfair practice, we highlight the importance of nondiscriminatory practices, which help to foster trust and integrity in the insurance system.