California Insurance License Exam Practice Test Practice Question
The California Code of Regulations governing claim settlement practices prohibits all of the following acts of unfair discrimination EXCEPT denial of claim based on
Correct Answer: C
Rationale: The California Code of Regulations prohibits unfair discrimination in claim settlements based on protected characteristics such as gender, income, and physical handicap. Denying a claim based on gender (A), income (B), or a physical handicap (D) constitutes discrimination against individuals based on their identity or circumstances. In contrast, denying a claim due to reckless behavior (C) is permissible, as it relates to the actions of the claimant rather than their inherent characteristics. Thus, reckless behavior does not fall under the same protective measures as the other options.
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