Unfair discrimination in insurance means:

Unfair discrimination in insurance refers specifically to the practice of treating individuals differently within the same risk class without a valid actuarial basis. When we talk about individuals of the same class and risk, it means that they share similar characteristics or risk profiles, such as health status, occupation, or lifestyle choices. Charging different premiums without justifiable reasons can lead to inequities and is considered unfair discrimination.

In the context of insurance, fairness requires that premiums be based on relevant risk factors that accurately reflect an individual's likelihood of filing a claim. When insurers charge different rates for the same risk class without a logical basis, they violate the principle of fairness and can perpetuate inequalities.

Other options may seem relevant but do not align with the definition of unfair discrimination. For instance, offering different rates based on personal preferences might reflect lawful considerations or marketing strategies rather than unfair discrimination. Similarly, charging varying premiums based on age is typically allowed due to the legitimate actuarial evidence linking age to risk levels. Using geographical location for pricing also generally follows statistical evidence that certain areas have different risk profiles, thus it does not constitute unfair discrimination.