An Ohio life insurer charges two applicants of the same class and equal expectation of life different premium rates for the same policy, with no actuarial justification. This conduct is:

Why A is correct

ORC 3901.21(F) makes it an unfair discriminatory practice for a life insurer to discriminate between individuals of the same class and equal expectation of life in the rates charged, in dividends or benefits, or in policy terms. Charging unjustified different prices to similarly situated applicants undermines the actuarial fairness principle underlying Ohio rate regulation; each insured of the same class and like life expectancy must be treated alike.

Why the other options are wrong

• B) Rebating involves giving a premium rebate or special favor as an inducement to purchase, not charging different rates to like applicants.
• C) Twisting is misrepresenting or incompletely comparing policies to induce a policyholder to lapse, forfeit, or replace existing coverage — not the rate-charging conduct described.
• D) Defamation is making false statements about an insurer's financial condition calculated to injure a person in the insurance business, which is unrelated to discriminatory rates.

Memory hook

Same class, same life expectancy — same price, or it's unfair discrimination.