Texas Statutes and Rules Common to Life and Health Insurance

A Texas insurer charges higher life premiums to applicants with a documented history of heart disease. Is this unfair discrimination?

Answer and explanation
Answer: D. Discrimination is unfair only between individuals of the same class and equal expectation of life. A materially different mortality risk places the applicant in a different class.Source: Texas Insurance Code — Tex. Ins. Code ch. 544, actuarially justified classifications

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