Texas Statutes and Rules Common to Life and Health Insurance
What is the essential test for deciding whether a rate distinction is unfair discrimination in Texas?
Answer and explanation
Answer: A. The line between lawful classification and unfair discrimination is actuarial justification. Distinctions grounded in demonstrable differences in risk are permitted; arbitrary ones are not.Source: Texas Insurance Code — Tex. Ins. Code ch. 544, standard for permissible classifications
More texas statutes and rules common to life and health insurance questions
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590 Texas questions like this one.
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