State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California law (CIC Sections 10146 and 10147), an insurer may NOT use which factor in underwriting life or disability insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California prohibits life and disability insurers from discriminating against individuals based on genetic characteristics, and from requiring or considering genetic test results in underwriting. The law reflects the concern that people should not lose insurability because of inherited risk markers they did not choose. Smoking history, driving records, and hazardous avocations remain legitimate and permissible underwriting factors that insurers may consider when classifying risk and setting premiums.
Why the other options are wrong
- B) Smoking is a valid risk classification factor and is routinely used in life insurance underwriting to set premiums.
- C) Driving records and motor vehicle reports are legitimate underwriting information sources for assessing risk.
- D) Hazardous avocations, such as skydiving or racing, may be rated or excluded through proper underwriting procedures.
Memory hook
Your genes are off-limits in California underwriting; your habits and hobbies are not.