State RegulationsCO specificDifficulty 1/5
Under Colorado's unfair-discrimination rules for LIFE insurance, rates and benefits may differ between two individuals only when they differ in:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-3-1104(1)(f) prohibits unfair discrimination between individuals of the same class with an equal expectation of life in life insurance pricing and benefits. Differences in genuine class or expectation of life justify different treatment; classifying solely on marital status or sex is expressly barred absent actuarial justification or a family-unit design, and residence or payment mode are not permitted discrimination bases.
Why the other options are wrong
- A) Residency inside or outside Colorado is not a lawful basis for unequal life insurance treatment.
- B) Premium mode and payment plan change how premiums are collected, not the permitted bases for rate discrimination.
- D) Classification solely on marital status or sex is itself a prohibited discrimination under the statute.
Memory hook
Same class, same life expectancy — same price. Anything else needs actuarial proof.