State RegulationsAZ specificDifficulty 1/5
Under Arizona's unfair discrimination statute, an insurer may not discriminate between individuals of the same class when they share what characteristic?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A.R.S. 20-448 prohibits unfair discrimination between individuals of the same class and equal expectation of life in the rates or benefits charged for life or disability insurance. Actuarially sound class distinctions are lawful, but charging equal risks unequally is an unfair trade practice with discipline consequences.
Why the other options are wrong
- A) Residence alone does not place applicants in the same actuarial class for purposes of A.R.S. 20-448.
- C) Sharing a producer has no bearing on risk classification and creates no equal-expectation-of-life class.
- D) Birth month matters for license renewal timing under Arizona licensing law, not for insurance risk classification.
Memory hook
Same class, same life expectancy, same price — 20-448.