Under C.R.S. § 10-3-1104(1)(f), Colorado life insurance rates may differ between individuals only when the individuals differ in:

Why B is correct

For life insurance, C.R.S. § 10-3-1104(1)(f) prohibits discrimination between individuals of the same class and equal expectation of life. Rate differences must rest on genuine differences in class and expectation of life, not on arbitrary personal traits; anything else is unfair discrimination under Colorado law.

Why the other options are wrong

• A) Income and net worth are not the statutory standard Colorado applies to life rate discrimination.
• C) Residence alone is not the standard; the statute keys on class and expectation of life.
• D) Classifying solely on marital status or sex is expressly prohibited absent actuarial justification or a family-unit design.

Memory hook

Life rates: same class and equal expectation means no difference.

Why A is correct

For life insurance, C.R.S. 10-3-1104(1)(f) makes it unfair discrimination to differentiate between individuals of the same class and equal expectation of life in premiums, benefits, or policy terms. Actuarially equal risks must be treated alike under the Colorado unfair-competition statute.

Why the other options are wrong

• B) Occupation and premium mode are not the statutory test for life discrimination under this subsection.
• C) Sharing an insurer or a policy year has no bearing on the discrimination standard.
• D) Residence and beneficiary designation are not the two characteristics the statute identifies.

Memory hook

Life: same class, equal expectation - equal treatment.

Why A is correct

C.R.S. § 10-3-1104(1)(f) prohibits unfair discrimination between life insurance individuals of the same class and with an equal expectation of life. Insurers may distinguish between different classes, but two applicants who present the same class and the same life expectancy must be treated alike under the standard the Colorado Division of Insurance enforces.

Why the other options are wrong

• B) Residence in the same city does not define the prohibited discrimination standard; class and life expectancy do.
• C) Different health histories may place applicants in different classes, which the statute permits.
• D) Shared industry of employment is not the measure the statute uses for life insurance discrimination.

Memory hook

Same class, same life expectancy — treat them the same.