A California disability income insurer is underwriting an applicant who is HIV-positive. Under CIC Section 799, the insurer may:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 799 states that its purpose is to prevent life or disability income insurers from making unfair distinctions between individuals of the same class in underwriting disability income insurance for individuals living with HIV. HIV is treated like other chronic medical conditions: the insurer may weigh it together with all relevant medical and occupational information, but it cannot be the sole basis for denial, benefit limitation, or a higher rate. This California protection reflects the position that managed HIV disease does not by itself justify adverse underwriting treatment.
Why the other options are wrong
- B) Automatic denial based solely on HIV status is precisely the unfair distinction Section 799 prohibits.
- C) A blanket surcharge for all HIV-positive applicants, without individual assessment, is an unfair distinction by class.
- D) Insurers remain subject to fair underwriting standards and may not act arbitrarily; HIV status alone is not a permissible sole reason.
Memory hook
HIV is a factor, not a verdict. California lets DI underwriting weigh it, never alone.