Metro City Has Six Different Zip Codes

question 38

Multiple Choice

Metro City has six different zip codes.XYZ Insurance Company markets coverages in Metro City.Any applicant who lists one particular zip code is automatically quoted a premium that is twenty percent more than the average premium for applicants from the other five zip codes,even if the loss exposure is identical.Which regulatory objective is not being met given XYZ's premium structure?

• A)Rates must be adequate.
• B)Rates must not unfairly discriminate.
• C)Rates must be responsive.
• D)Rate must not be excessive.

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Definitions:

Workplace Violence

Any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the work site.

Interactional Justice

Refers to the perceived fairness of the interpersonal treatment individuals receive from decision-makers, including respect and propriety in communication.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests and best practices from other companies.

Outcome Fairness

The perception among employees that the outcomes they receive from the workplace are fair, equitable, and just, relating to decisions about rewards, promotions, or layoffs.