Fair Housing

A Florida insurance company charges higher homeowners insurance rates for homes in predominantly minority neighborhoods with no actuarial basis. This is called:

ARisk-based pricing
BInsurance redlining✓ Correct
CUnderwriting discretion
DDiscriminatory appraisal

Explanation

Insurance redlining refers to the illegal practice of denying or charging more for insurance coverage based on the racial or ethnic composition of a neighborhood rather than legitimate actuarial risk factors.

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