Fair Housing
An Arizona insurance company that charges higher homeowner's insurance premiums or refuses coverage based on the racial composition of the neighborhood is engaging in:
ALegal underwriting based on risk factors
BRedlining—illegal discrimination in insurance based on protected class characteristics of the area✓ Correct
CPrudent risk management
DStandard actuarial practice
Explanation
Insurance redlining—refusing coverage or charging higher premiums based on the racial or ethnic composition of a neighborhood rather than objective property characteristics—violates federal fair housing laws and state insurance regulations.
Related Arizona Fair Housing Questions
- Which of the following is NOT one of the original protected classes under the federal Fair Housing Act of 1968?
- A real estate agent who tells a client from a minority group that there are 'no good listings' in a certain neighborhood when listings do exist is engaging in:
- Disparate impact under fair housing law refers to:
- A lender refuses to make mortgage loans in a specific low-income neighborhood regardless of individual applicant qualifications. This practice is called:
- A real estate agent who shows buyers only properties in neighborhoods where residents share the buyer's national origin is engaging in:
- Disparate impact under the Fair Housing Act means that a housing policy is discriminatory if:
- An advertisement stating 'Perfect for young professionals, no children' violates fair housing because it:
- Under the Fair Housing Act, a landlord must make reasonable accommodations for a tenant with a disability. A 'reasonable accommodation' is:
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