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[R023]
redlining
The designation by an insurer of a certain geographical area considered
unacceptable for the writing of insurance, usually illegal because
it is considered to be unfair discrimination. Redlining is refusing
to insure, refusing to renew, canceling, charging a higher rate,
or limiting the amount or type of property insurance solely because
of the geographic location of a risk. Further, redlining involves
risk selection criteria that are not based on sound underwriting
and actuarial principles, reasonably related to actual or anticipated
loss experience of risk(s) having similar characteristics.
(See unfair discrimination.)
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