State RegulationsFL specificDifficulty 2/5
An insurer refuses to issue a policy to an applicant whose blindness is the only distinguishing factor, while accepting other applicants who present the same actuarial risk. Under Florida law, this is
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Why D is correct
Under Fla. Stat. 626.9541 (Chapter 626, Florida Statutes), refusing to insure a person who presents the same risk as others in the class is unfair discrimination. Because the applicant's condition did not affect the actuarial risk, the refusal treats equals unequally, and DFS may penalize the insurer and discipline any agent who participates in the practice.
Why the other options are wrong
- A) Underwriting discretion ends where equally risky applicants are treated differently without any risk basis.
- B) No replacement of an existing policy is involved, so twisting is not the issue.
- C) No commission or value was returned to the applicant; rebating concerns unlawful inducements.
Memory hook
Equal risk deserves equal treatment.