Under Maryland law, charging different rates or limiting coverage based on partial blindness constitutes what?

Under Maryland law, charging different rates or limiting coverage based on partial blindness constitutes what?

• A. Fair underwriting
• B. Unfair discrimination
• C. Reasonable risk classification
• D. Market practice

Answer: (B)

Charging different rates or limiting coverage based on partial blindness is unfair discrimination. Maryland law requires underwriting and rating to reflect actual risk using factors that have a demonstrable, actuarial link to the loss exposure. A disability like partial blindness is a protected characteristic, and using it to set premiums or determine eligibility treats the person differently for reasons that aren’t tied to meaningful risk differences. If a factor truly corresponds to expected loss and is supported by data, it may be used, but partial blindness generally isn’t a valid basis for differential pricing or coverage decisions. This isn’t just about fair underwriting or market practice—it’s about avoiding discriminatory practices in insurance pricing and eligibility.

Charging different rates or limiting coverage based on partial blindness is unfair discrimination. Maryland law requires underwriting and rating to reflect actual risk using factors that have a demonstrable, actuarial link to the loss exposure. A disability like partial blindness is a protected characteristic, and using it to set premiums or determine eligibility treats the person differently for reasons that aren’t tied to meaningful risk differences. If a factor truly corresponds to expected loss and is supported by data, it may be used, but partial blindness generally isn’t a valid basis for differential pricing or coverage decisions. This isn’t just about fair underwriting or market practice—it’s about avoiding discriminatory practices in insurance pricing and eligibility.