Fair Housing

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:

AOnly the NC Insurance Code
BThe Fair Housing Act's prohibition on discriminatory terms and conditions✓ Correct
CRESPA
DThe NC General Statutes on contracts

Explanation

The Fair Housing Act prohibits discriminatory terms, conditions, or practices in the provision of homeowner's insurance based on race, color, or national origin (among other protected classes). This practice is a form of insurance redlining.

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