State RegulationsOH specificDifficulty 1/5
Under ORC 3901.21(M), a life insurer may not discriminate in rates, dividends, benefits, or terms of the contract between individuals who are:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
ORC 3901.21(M), together with ORC 3901.21(F), makes it an unfair practice for a life insurer to discriminate between individuals of the same class and equal expectation of life in the rates, dividends, benefits, or terms of the contract. Life underwriting may differentiate based on mortality-related factors, but persons who are truly alike in class and life expectancy must be treated alike.
Why the other options are wrong
- A) Different occupations often justify different treatment because occupation affects risk; the statute bars unequal treatment only within the same class and equal expectation of life.
- B) Age alone is not the statutory test; life underwriting lawfully considers health and other mortality factors, so equal age does not mandate equal rates.
- D) 'Same class and essentially the same hazard' is the standard for non-life lines under ORC 3901.21(F); life insurance uses the equal expectation of life formulation.
Memory hook
Life: equal expectation of life, equal treatment.