PLCaliforniamedium
A California auto insurer files a class plan that adds a surcharge for unmarried male drivers under 25 and a credit-based pricing tier. Under Cal. Ins. Code § 1861.02 and supporting regulations, which statement is correct?
Marital status and credit information are prohibited as auto rating factors, and gender use is restricted by CDI gender-non-discrimination rules
BBoth the marital-status surcharge and the credit-based pricing tier are fully permitted in California as recognized optional auto rating factors
COnly the credit-based pricing tier is prohibited in California, while the marital-status and the gender-based surcharges both remain entirely unrestricted
DAll three of these factors - marital status, gender, and credit information - are treated as mandatory rating factors under Proposition 103 itself
Why this is the answer
California Insurance Code § 1861.02(c) and its implementing regulations bar private passenger auto insurers from using marital status, credit information, or the absence of prior insurance as rating or eligibility criteria. Gender use was further curtailed by CDI's 2019 gender-non-discrimination amendments to 10 CCR § 2632.5, which removed gender from the list of permitted optional factors. The class plan in the stem fails on both the marital-status surcharge and the credit-pricing tier; the gender surcharge is independently impermissible.
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