Fair Housing

A NH insurance company that charges higher homeowner's insurance premiums in minority-majority ZIP codes than in comparable White-majority ZIP codes may be engaging in:

ASound actuarial risk assessment
BIllegal redlining under federal and state fair housing and insurance laws✓ Correct
CLegal rate-setting that is not covered by fair housing
DOnly a violation of state insurance law, not fair housing law

Explanation

Insurance redlining — charging higher premiums based on neighborhood racial composition rather than actual risk factors — violates both the Fair Housing Act (as applied by HUD to property insurance) and state insurance regulations.

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