117k views
2 votes
Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance?

1. victims of domestic abuse
2. victims of natural disasters
3. veterans injured overseas
4. survivors of the Holocaust

User Pconrey
by
7.7k points

1 Answer

3 votes

Final answer:

The Unfair Practices Act likely provides additional protections to victims of domestic abuse, since this group faces unique insurance challenges and vulnerabilities.

Step-by-step explanation:

The Unfair Practices Act regulates trade practices in the business of insurance to ensure that certain groups receive additional protection under the law. These laws are designed to protect individuals from overwhelming economic forces or disasters that they did not cause themselves. In the context of the given options, the group most likely to be offered additional protection would be victims of domestic abuse. This group often faces unique challenges and vulnerabilities that can be exacerbated by insurance practices. Therefore, measures may be in place to prevent discrimination in insurance practices based on the situation of domestic abuse. While insurance operates on the principle of actuarial fairness and typically premiums must cover claims, administrative costs, and company profits, there may be regulatory exceptions made to protect certain at-risk groups.

User Brian Wylie
by
7.5k points