Life · Chapter 7 · Policy Issue & Delivery
Unfair vs Legal Discrimination
Definition
Prohibited (unfair): refusing to insure solely because of race, color, creed, marital status, sex, or national origin (F.S. 626.9541(1)(x)1) — or because of residence, age, or lawful occupation where there is no reasonable relationship to the coverage (626.9541(1)(x)2). Sexual orientation may never be used in underwriting, and marital status, living arrangements, occupation, gender, beneficiary designation, or ZIP code may not be used to infer it (F.S. 627.429(4)). Permitted (legal): actuarially supported risk classification — age, health history, tobacco use, occupation, hobbies — so long as individuals of the same actuarially supportable class and equal expectation of life are treated alike (F.S. 626.9541(1)(g)1).
Exam tip
Don't import the everyday meaning of "discrimination" — charging a smoker more is FAIR discrimination. The trap is that Florida's prohibited list is longer than the course list: race, color, creed, marital status, sex, national origin, and sexual orientation. Residence/ZIP, age and occupation are prohibited only when there's no reasonable relationship to the coverage.
Related terms