P&CNJmedium
Under N.J.S.A. 17:29B-4(7), unfair discrimination in NJ insurance rating includes:
ACharging different premiums to risks with genuinely different expected losses, which is lawful fair discrimination permitted under the statute
BOffering a safety-feature discount supported by loss data
Making or permitting unfair discrimination between individuals of the same class and essentially the same hazard
DCancelling a policy for non-payment of premium
Why this is the answer
N.J.S.A. 17:29B-4(7) prohibits unfair discrimination between individuals of the same class and essentially the same hazard in premiums, policy fees, or rates. Charging different premiums to risks with genuinely different expected losses is lawful 'fair' discrimination. Actuarially supported safety discounts and cancellations for non-payment are not unfair discrimination.
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