P&COhiomedium
Under R.C. 3937.02, a rate is 'unfairly discriminatory' when which of the following occurs?
ADifferent premiums are charged to risks whose expected losses genuinely differ
BDiscounts are offered for installing safety equipment
CAn insurer cancels a policy for non-payment of premium
Similar risks are charged different rates without actuarial basis
Why this is the answer
R.C. 3937.02's 'unfairly discriminatory' prong addresses classification, not the act of differentiating per se. Charging different premiums when expected losses genuinely differ is lawful 'fair discrimination.' Safety discounts and non-payment cancellations are not rate discrimination at all. The violation occurs when similar risks are treated differently without actuarial support.
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