What term describes the practice of charging individuals in the same risk and age class different rates for insurance due to an insignificant factor?

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The term that accurately describes charging individuals in the same risk and age class different rates for insurance based on an insignificant factor is discrimination. In the context of insurance, discrimination refers to unfair treatment in underwriting or premium settings, where individuals grouped by the same risk criteria (such as age and health) could be charged different premiums based on irrelevant attributes. This practice is considered unfair because it does not reflect the actual risk involved and can lead to inequitable access to insurance coverage.

On the other hand, redlining specifically refers to the practice of denying services, such as insurance, to residents in certain geographic areas, often based on racial or economic factors. Underwriting is the process by which insurers assess risks and determine the terms of coverage, rather than a term for inequitable pricing. Segregation, in this context, refers more to separating different groups rather than specifically citing the practice of varied pricing for the same risk level. Thus, discrimination is the most fitting term for the scenario presented.

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