An applicant has a genetic characteristic that indicates a statistically increased risk of a future disease, but the applicant has no symptoms. Under California law (Insurance Code Sections 10146 and 10147), a life insurer:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California Insurance Code Section 10146 prohibits life and disability income insurers from failing or refusing to accept applications, refusing to insure, or otherwise discriminating against applicants based on genetic characteristics or the results of genetic tests. Section 10147(b) defines genetic characteristics as identifiable genes or chromosomes known to cause a disease or associated with a statistically increased risk, when no symptoms are present. The prohibition reflects California's policy of protecting consumers from genetic discrimination in insurance underwriting, and it applies to life insurance delivered in the state.
Why the other options are wrong
- B) Declining the application for a symptom-free genetic characteristic violates the statutory prohibition on genetic discrimination. California law protects applicants in this situation.
- C) Charging a higher premium based solely on a genetic test result is discrimination prohibited by Section 10146. The insurer may not use the result to increase rates.
- D) No requirement exists to report genetic findings to an employer. The statute protects the applicant from genetic-based discrimination and does not mandate disclosure to employers.
Memory hook
Genetic traits = off-limits for underwriters. No symptoms, no discrimination — California law says hands off.