Under California law (Sections 10146 and 10147(b)), an insurer may not:

Why A is correct

California prohibits insurers from discriminating against applicants based on genetic characteristics. Section 10146 prohibits using genetic characteristics to deny or limit coverage or to set different premiums, and Section 10147(b) defines "genetic characteristics" and reinforces the ban. Genetic information is protected because predictive genetic tests can reveal future disease risk unrelated to current health. Insurers may still underwrite based on actual current health, age, and medical history.

Why the other options are wrong

• B) Age is a legitimate underwriting factor and is always requested on the application.
• C) Medical records are a normal underwriting source; only genetic information is restricted.
• D) Smoking status is a valid risk factor that insurers may use to classify risks.

Memory hook

California: genes are off-limits in underwriting, but current health, age, and smoking are fair game.

Why A is correct

California's Article 2.6 (Sections 10146-10149.1) prohibits unfair discrimination based on a person's genetic characteristics in life and disability income insurance underwriting, requires the insurer to keep genetic information strictly confidential, and requires informed consent before underwriting on the basis of a genetic test. These rules mirror the HIV protections and bar insurers from using genetic traits as the sole basis for adverse decisions, while still allowing other medical underwriting.

Why the other options are wrong

• B) Insurers may still ask medical questions and underwrite on health factors; only genetic-based discrimination is restricted.
• C) Family medical history may be considered within limits; the statute targets genetic tests and characteristics as a discriminatory basis.
• D) Medical exams remain a permissible underwriting tool.

Memory hook

Genes are off-limits as a discrimination trigger. Consent, confidentiality, and fairness govern genetic underwriting in California.