Tim and Tom are twins. When they applied for life insurance from Company A, the insurance company found that while neither of them smoked and both had a very similar lifestyle, Tim was in a much stronger financial position that Tom. Because of this, the company charged Tim a higher rate for his insurance. This practice is called

Tim and Tom are twins. When they applied for life insurance from Company A, the insurance company found that while neither of them smoked and both had a very similar lifestyle, Tim was in a much stronger financial position that Tom. Because of this, the company charged Tim a higher rate for his insurance. This practice is called


A) Post underwriting

B) Discrimination

C) Twisting

D) Interdependent Sale.


Answer: B) Discrimination

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