An insurance company in NC charges higher premiums for homeowner's insurance on properties in predominantly minority neighborhoods compared to identical properties elsewhere. This may violate:
Why The Fair Housing Act's prohibition on discriminatory terms and conditions Is Correct
Answer B: The Fair Housing Act's prohibition on discriminatory terms and conditions
Exam Tip: Fair Housing
Fair Housing questions test both federal (Fair Housing Act of 1968) and state-level protected classes. The federal protected classes are race, color, religion, national origin, sex, familial status, and disability. Many states add additional protections.
Key Fair Housing Terms in This Question
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
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Related North Carolina Questions
- The NC Fair Housing Act (North Carolina law) prohibits housing discrimination based on the same protected classes as the federal act plus:Fair Housing
- Under the Fair Housing Act, a lender who charges higher fees or interest rates to minority borrowers with similar qualifications compared to white borrowers is engaged in:Fair Housing
- Which federal law specifically prohibits discrimination in credit transactions (including mortgages) based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance?Fair Housing
- Which federal law prohibits discrimination in mortgage lending based on race, color, religion, national origin, sex, disability, or familial status?Finance
- North Carolina's fair housing laws protect all seven federal protected classes plus:Fair Housing
- A NC property manager who discovers a fair housing violation by a tenant (e.g., a tenant harassing another tenant based on race) should:Property Management
Key Terms to Know
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
SteeringAn illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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