State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A California insurer's underwriter proposes to decline an applicant solely because the applicant's genetic testing shows a predisposition to a future illness. Under California law, this underwriting practice is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California law bars discrimination based on genetic characteristics in insurance underwriting (CIC Section 10146) and prohibits using HIV/AIDS status to deny or rate coverage in most circumstances (CIC Section 799). These statutes recognize that predispositions and protected health conditions should not make coverage unavailable. An underwriter may use many legitimate risk factors, but genetic characteristics and HIV status are specifically protected in the underwriting process under California law.
Why the other options are wrong
- B) Underwriting is not unrestricted; California law carves out genetic characteristics and HIV status as impermissible bases.
- C) The protection is not age-limited; it applies regardless of the applicant's age.
- D) Protecting the pool does not authorize discrimination prohibited by statute; the law draws the line at these protected characteristics.
Memory hook
Genes and HIV are off-limits in the underwriting room — California drew that line in the law.