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.