[R010]

rate discrimination
To rate or calculate the premium charged an applicant for insurance differently than other insureds of the same class or with the same characteristics, because of any factor not related to the applicant's loss producing or expense producing qualities, such as charging a higher premium than the loss producing or expense producing qualities would justify. Factors such as a person's race, color, creed, or national origin that are unrelated to the chance of loss should not affect the writing of insurance. While making distinctions is essential in any insurance system to match individual risks with the rates appropriate for their class, unfair discrimination is illegal. All states prohibit rate discrimination.