Which of the following could lead to unfair discrimination in insurance practices?

Unfair discrimination in insurance practices occurs when individuals are treated differently based on certain characteristics that have no bearing on their insurance risk. In this context, criminal background checks can lead to unfair discrimination if insurers use criminal history as a criterion for determining the eligibility, premiums, or availability of insurance coverage, regardless of the actual risk involved. Instead of reflecting genuine risk factors, such practices can disproportionately affect certain groups, leading to unequal treatment based on past behavior rather than current risk assessment.

Geographical location, education level, and marital status could potentially be factors in insurance underwriting, but they are often connected to legitimate risk assessment standards or business practices. For example, geographical location can align with statistical data on risks like natural disasters or crime rates in certain areas. Education level might correlate with financial responsibility that insurers analyze, and marital status often relates to statistical findings regarding stability and risk. However, these factors do not inherently lead to unfair discrimination in the same way that inappropriate use of criminal background checks might promote bias or discrimination against individuals based on their past rather than their present circumstances.