Rates in insurance must not be which of the following?

In the context of insurance, rates are critical elements that determine the premiums policyholders pay. They must be calculated fairly and based on sound actuarial principles. The primary reason why rates must not be discriminatory is that insurance practices should be grounded in fairness and equity. Discriminatory rates would unfairly disadvantage certain groups or individuals based on characteristics that have no bearing on the risk they present. This goes against both ethical practice and legal requirements in many jurisdictions, which mandate that rates be based on objective risk factors rather than demographic or other non-relevant factors.

In a properly regulated insurance market, ensuring that rates are not discriminatory helps to maintain trust and integrity in the insurance process, promotes market fairness, and enhances consumer protection. Thus, establishing non-discriminatory practices in rate setting is fundamental for compliance with insurance regulations and for fostering equitable treatment of all policyholders.