Question

An insurance company may NOT reject a prospective insured life application on the basis of which of the following factors?

a) Age
b) Smoking status
c) Medical history
d) Financial stability

Answer 1

An insurance company may not reject a life insurance application based on age (if the individual is 40 or older) as it is a protected characteristic under the EEOC federal laws.

Step-by-step explanation:

According to the Equal Employment Opportunity Commission (EEOC), an insurance company may not reject a life insurance application based on certain factors that are protected under federal laws. These include race, color, religion, sex (including pregnancy), sexual orientation, national origin, age (40 or older), disability, or genetic information. Taking into account this information, the answer to the student's question is that an insurance company may NOT reject a prospective insured's life application based on age (option a), assuming the individual is 40 or older, as this is a protected characteristic under federal law.