State RegulationsCO specificDifficulty 3/5
Which action by a Colorado insurer is a prohibited unfair discrimination under C.R.S. § 10-3-1104(1)(f)?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-3-1104(1)(f) prohibits refusing an applicant solely because another insurer previously refused, canceled, or non-renewed that person's coverage. A prior insurer's decision is not, by itself, an actuarial reason to decline, and the Commissioner of Insurance treats such refusals as unfair discrimination.
Why the other options are wrong
- B) Equal treatment of applicants in the same class with essentially the same hazard is what the statute requires, not a violation.
- C) Rating a documented, actuarially justified risk higher is permitted underwriting.
- D) Marital-status classification is banned only when it lacks actuarial justification or family-unit design; with actuarial justification it is allowed.
Memory hook
Another insurer's refusal is not an actuarial reason.