Question

1. acme insurance and apogee insurance agree to offer different premium rates for persons of equal risk within a particular class. they also agree to limit benefits paid to insureds within this class if the insureds live in certain towns in florida. what are acme and apogee engaging in?

○ a. acceptable marketing and underwriting practices
○ b. false advertising
○ c. insurance fraud
○ d. unfair and prohibited business practices

Explanation:

Insurance companies should not discriminate based on arbitrary factors like town of residence for equal - risk classes. Agreeing to different premium rates and benefit limitations for such a reason violates fair business practice regulations. This is an unfair and prohibited business practice as it goes against the principle of equitable treatment of insureds within the same risk class.

Answer:

d. unfair and prohibited business practices