Question

Which of the following would be an example of an insurer participating in the unfair trade practice of discrimination?

A) Offering discounted rates for safe driving records
B) Charging higher premiums based on gender
C) Providing discounts for bundling insurance policies
D) Adjusting rates based on the insured's age

Answer 1

An insurance company participating in the unfair trade practice of discrimination would be charging higher premiums based on gender.

Step-by-step explanation:

An insurance company participating in the unfair trade practice of discrimination would be charging higher premiums based on gender.

Charging higher premiums based on gender is considered an unfair practice because it treats individuals differently based on their gender, rather than their actual risk profile.

Examples of discrimination in insurance include charging higher premiums for women, as they are typically charged more for health insurance due to their higher average healthcare costs.