What is an example of behavior that would NOT be considered unfair discrimination by insurers?

Discriminating based on the insured's habits and lifestyle is not considered unfair discrimination by insurers because this factor can be directly related to the risk associated with insuring that individual. Insurance underwriting often incorporates assessments of habits and lifestyle choices, such as smoking, exercise routines, or occupation, which can significantly influence the likelihood of claims and the potential for loss.

For instance, a person who engages in risky behaviors may present a higher risk to the insurer, and it is reasonable for rates or eligibility to vary based on that assessed risk. Insurers must balance the risks they take on by considering the probability of claims occurring, and this can warrant different treatment among policyholders based on their individual habits and lifestyle choices.

In contrast, the other options reflect criteria that typically lead to unfair discrimination, as age or geographic location may not correlate directly with an individual's actual risk profile, and benefits and coverages should be standardized to treat all insureds equitably.